QUESTION 18

1. Holly has recently graduated from college and has bought a house that was built 50 years ago for $100,000. She used a real estate agent to help her find and purchase the house, and the real estate agent received 5 percent of the value of the sale, or $5,000, to be paid by the seller of the house. The value of GDP in this case would

   	a.	increase by $5,000.
   	b.	increase by $105,000.
   	c.	increase by $95,000.
   	d.	increase by $100,000.
   	e .2	not be affected because the house was not produced in the current time period. Which of the following statements is true

2. 	a.	Net investment is lower than gross investment.
   	b.	There is not much difference between gross and net investment.
   	c.	Net investment is usually larger than gross investment.