GA Wind Farm in Iowa Buys a Large Turbine Generator

question 93

Multiple Choice

GA 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:

Boards of Directors

A group of individuals elected to represent shareholders and oversee the management and direction of a company or organization.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that govern how financial statements should be prepared and presented globally.

Local Environment

The specific conditions and natural surroundings in which a business or entity operates, including factors like climate, ecology, and community.

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.