Essay
Explain which expenditure category of GDP changes and the direction of the change that results for each of the following transactions:
a.A domestic business purchases a domestically produced computer to use in a business office.
b.A domestic business produces a computer that is sold to a foreign company.
c.The federal government purchases a domestically produced computer to use in a court house.
d.A domestic household purchases a domestically produced computer to use in a home.
e.A domestic household purchases a computer produced in a foreign country to use in a home.
Correct Answer:

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a.Investment spending increases by the p...View Answer
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