When John Buys New Tires for His Car It ________,And

question 113

Multiple Choice

When John buys new tires for his car it ________,and when Ford buys tires to put on new cars it ________.

• A) does not count toward GDP; does not count toward GDP
• B) does not count toward GDP; counts toward investment
• C) counts toward consumption; counts toward investment
• D) counts toward consumption; does not count toward GDP
• E) counts toward investment; counts toward investment

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Definitions:

Subrogation

The legal right for insurers to pursue a third party that caused an insurance loss to the insured.

Guarantor

A person or entity that agrees to be responsible for another's debt or performance under a contract if the original party defaults.

Debtor's Obligation

A debtor's legal responsibility to repay a debt as agreed upon with the creditor.

Mechanic's Lien

A legal claim on a property's title to protect those who have provided work or materials that enhance the property's value.