When an american household purchases a bottle of italian wine for $100, a. u. s. consumption does not change, u. s. net exports decrease by $100, and u. s. gdp decreases by $100. b. u. s. consumption does not change, u. s. net exports increase by $100, and u. s. gdp increases by $100. c. u. s. consumption increases by $100, u. s. net exports decrease by $100, and u. s. gdp does not change.

correct option is c

U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change

Explanation:

we know here US purchases a bottle of Italian wine for $100

so as

if a person consumes goods then consumption will increase

and here goods is Italian wine so import will increases and as a result net export decreases

and GDP not include Net exports

and it takes into account only in domestic product so GDP does not change

so correct option is c

U.S. consumption increases by $100, U.S. net exports decrease by $100, and U.S. GDP does not change

c

explanation:

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