Business, 11.10.2020 23:01 RivvytheFanboy6510

A Japanese company builds an auto plant in Tennessee for $100,000,000, using only local labor and materials. The auto plant is a capital good produced by Americans and purchased by the Japanese. Using the expenditure approach, this transaction would be recorded as A. a $100,000,000 increase in investment. B. $100,000,000 paid to domestic factors of production. C. no change in GDP since the production of the plant is a transfer to the Japanese owners. D. a $100,000,000 increase in net exports. E. a $100,000,000 increase in production of capital goods. According to the income approach, this transaction would be recorded as A. $100,000,000 paid to domestic factors of production. B. a $100,000,000 increase in net exports. C. a $100,000,000 increase in production of capital goods. D. a $100,000,000 increase in investment. E. no change in GDP since the production of the plant is a transfer to the Japanese owners. According to the product approach, this transaction would be recorded as A. a $100,000,000 increase in net exports. B. a $100,000,000 increase in production of capital goods. C. a $100,000,000 increase in investment. D. $100,000,000 paid to domestic factors of production. E. no change in GDP since the production of the plant is a transfer to the Japanese owners.

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A Japanese company builds an auto plant in Tennessee for $100,000,000, using only local labor and ma...

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