Which of the Following Would Increase U.S. GDP

question 35

Multiple Choice

Which of the following would increase U.S. GDP?

• A) Ford Motor Company begins to produce and sell cars in China.
• B) Mercedes-Benz begins to produce and sell cars in Mississippi.
• C) An American investor buys 100 shares of Ford stock.
• D) An American investor purchases 100 shares of Mercedes-Benz stock.

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Definitions:

Incremental Value

The additional value generated from a specific decision or investment, compared to a baseline scenario.

Equity-Financed

refers to the funding of business operations, investments, or assets through the issue of equity—such as stock—rather than taking on debt.

Firm A's Stock

Refers to the equity shares issued by a specific company, known here as Firm A, representing ownership interest.

Synergistic Benefits

The enhanced results or advantages that occur when two or more entities or factors work together, surpassing their individual capabilities.