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Suppose That a Firm Spends $200,000 to Build a Factory

Question 13

Multiple Choice

Suppose that a firm spends $200,000 to build a factory in 2012 that is expected to have a life of 10 years.As a result,GDP in 2012 will increase by:


A) $20,000
B) $200,000
C) You need to know the selling price of the factory to answer this question.
D) It depends upon the tax law regarding depreciation.

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