A Bozeman,Montana,household Receives a Social Security Check for $800,which It

question 105

Multiple Choice

A Bozeman,Montana,household receives a Social Security check for $800,which it uses to purchase a $599 television made in Korea by a Korean firm,as well as pay a local mechanic $191 to fix the family car.The household spends the remaining $10 on ice cream from Town and Country.As a result,U.S.GDP ________.

• A) does not change
• B) increases by $201
• C) increases by $800
• D) increases by $1,001

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Definitions:

Cashier's Check

A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier.

Check Forgery

The criminal act of making or altering a check with intent to defraud, such as by changing the amount or forging the drawer's signature.

Wrongfully Held Funds

Money that is unjustly retained or withheld from its rightful owner or beneficiary.

Depositors

Individuals or entities that place money into a bank account for safekeeping and potential interest accrual.