A Wind Farm in Iowa Buys a Large Turbine Generator

question 156

Multiple Choice

A wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut.As a result,

• A) U.S.investment,GDP,and GNP all increase by the same amount.
• B) U.S.investment increases,but GDP and GNP are unaffected by the purchase.
• C) U.S.investment and GDP increase by the same amount,but U.S.GNP increases by a smaller amount.
• D) U.S.investment and GNP increase by the same amount,but U.S.GDP increases by a smaller amount.

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Definitions:

Individual Retirement Account

A financial tool for individuals to save for retirement in a tax-advantaged way.

Unsecured Creditors

Creditors who have extended credit without securing collateral, putting them at greater risk if the borrower defaults.

Federal Bankruptcy Exemptions

Legal provisions that allow individuals filing for bankruptcy to retain certain assets and properties from creditor claims under federal law.

Motor Vehicle Exemption

A provision in bankruptcy law that allows an individual to keep a vehicle up to a certain value as exempt from seizure by creditors.