Jake, Sr Sells the Family Business, a Factory That Produces Snake

Multiple Choice

Jake, Sr. sells the family business, a factory that produces snake oil, to Jake, Jr., for $100, even though the factory has been assessed at $400,000. How will this transaction affect GDP?

A) Investment will increase by $100.
B) Investment will increase by $400,000.
C) Consumption will increase by $400,000.
D) GDP will not be affected by the transaction.