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Chiku Decides to Open a Bagel Shop in an Up-And-Coming

Question 50

Multiple Choice

Chiku decides to open a bagel shop in an up-and-coming neighborhood. She decides to buy an old pizza shop for $150,000 and spends $10,000 installing new equipment that will allow her to make bagels instead of pizza. How will Chiku's recent purchases affect GDP?


A) Investment will increase by $160,000
B) Investment will increase by $150,000 and consumption will increase by $10,000
C) Consumption will increase by $150,000 and investment will increase by $10,000
D) Investment will increase by $10,000

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