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Can you please assist? In an open economy, trade is allowed between countries. Assume a consumer purchases $1,000 worth of furniture manufactured in China. Which
Can you please assist?
In an open economy, trade is allowed between countries. Assume a consumer purchases $1,000 worth of furniture manufactured in China.
- Which component(s) of GDP are impacted by this purchase?
- Does GDP increase, decrease or stay the same? Briefly explain.
- Does your answer change if the company in China is a U.S. owned company? Why?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
