3666EconomicsMedium
How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts?
AThere is no impact because this transaction does not involve domestic production
BInvestment increased by Rs40,000 and net exports increases by Rs40,000
CNet exports increase by Rs40,000
DConsumption in increase by Rs40,000 and net export decreases by Rs40,000
Correct answer
D. Consumption in increase by Rs40,000 and net export decreases by Rs40,000
Explanation
The correct answer is Consumption in increase by Rs40,000 and net export decreases by Rs40,000.