Apple Releases a New IPhone

question 327

Multiple Choice

Apple releases a new iPhone. Which of the following components of U.S. GDP will not be affected, given that the iPhone is manufactured in China?

• A)​It will increase U.S. net exports, since a U.S. corporation makes the iPhone.
• B)​It will increase consumptions expenditures when U.S. consumers purchase new iPhones.
• C)​It will increase investment, since Apple places some of the iPhones in to its inventory.
• D)​It will increase government expenditures, since some iPhones are purchased by the federal government.

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Definitions:

Secured Transaction

A transaction in which the payment of a debt is guaranteed by personal property owned by the debtor.

Personal Property

Movable assets owned by an individual, as opposed to real property like land or buildings.

Debtor

An individual or entity that owes money or is legally obligated to make payments to another party.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.