Tom and Lilly Rented a House for $12,000 Last Year

Multiple Choice

Tom and Lilly rented a house for $12,000 last year.At the start of the year they bought the house they had been renting directly from the owner for $250,000.They believe they could rent it for $12,000 this year,but stay in the house.How much does Tom and Lilly's decision to buy the house change GDP?

A) it reduces GDP by $12,000
B) it does not change GDP
C) it raises GDP by $238,000
D) it raises GDP by $250,000