When a USCitizen Buys $500 of Chinese-Made Parts for a Motorcycle

question 9

Multiple Choice

When a U.S.citizen buys $500 of Chinese-made parts for a motorcycle,

• A)U.S.consumption falls by $500,U.S.net exports decline by $500,and U.S.GDP declines by $1000.
• B)U.S.consumption does not change,U.S.net exports decline by $500,and U.S.GDP declines by $500.
• C)U.S.consumption increases by $500,U.S.net exports remain the same,and U.S.GDP increases by $500.
• D)U.S.consumption increases by $500,U.S.net exports decline by $500,and U.S.GDP remains the same.