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Rachel Decides to Buy a House for $200,000

Question 44

Multiple Choice

Rachel decides to buy a house for $200,000. The only thing Rachel needs to do is replace all the gutters for $1,000, which she happily does. How will GDP be affected by Rachel's recent purchases?


A) GDP will increase by $199,000.
B) GDP will increase by $190,000.
C) GDP will increase by $201,000.
D) GDP will increase by $1,000.

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