An American-Owned McDonald's Opens in Russia

question 114

Multiple Choice

An American-owned McDonald's opens in Russia. How would the net revenue earned by this restaurant affect the GDP and GNP of the United States?

• A) It would increase GNP and GDP.
• B) It would increase GNP and leave GDP unchanged.
• C) It would increase GDP and leave GNP unchanged.
• D) It would leave both GDP and GNP unchanged.

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Definitions:

U.S. Goods

Products and commodities that are produced, manufactured, or grown within the United States.

Japanese Economy

The economic system of Japan, characterized by its large industrial capacity, emphasis on technology, and robust export sector.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

U.S. Dollar

The official currency of the United States of America, widely used for domestic and international transactions.