Suppose the Value of Your Home Increases from $100,000 to $125,000

question 127

Multiple Choice

Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:

• A)adds nothing to GDP.
• B)increases GDP by $25,000.
• C)increases GDP by $100,000.
• D)increases GDP by $125,000.

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