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Assume that a US company imports 10 million dollars worth of car motors from Japan. The motors are stored in a warehouse and will only
Assume that a US company imports 10 million dollars worth of car motors from Japan. The motors are stored in a warehouse and will only be used by next year. Mark all the CORRECT statements: a) On the production side computation of GDP: GDP does not increase. a) On the production side computation of GDP: GDP increases by 10 million. b) On the expenditure side computation of GDP: Investment in inventories will increase by 10 million. c) On the expenditure side computation of GDP: Imports will increase by 10 million. d) On the income computation of GDP: the purchase will induce 10 million negative prots. e) On the income computation of GDP: the purchase will induce no changes
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