Which of the Following Would Increase GNP in the United

question 99

Multiple Choice

Which of the following would increase GNP in the United States?

• A)an increase in the production of U.S.-owned General Motors cars made in Mexico
• B)an increase in the production of Japanese-owned Toyota cars in Mexico
• C)an increase in the production of Japanese-owned Toyota cars in the U.S.
• D)an increase in the production of Mexican-owned Grupo Minsa corn in the U.S.

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Definitions:

Equity Method

An accounting method used to record investments in other companies, where the investment's value is adjusted based on the investor's share of the investee's profit or loss.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's assets and earnings.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity without controlling it.

Carrying Amount

The value of an asset as shown in the business’s accounts, reflecting its cost minus any depreciation or impairment charges.