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QUESTION
Suppose consumption increases by $100m, all of which is spent on imports. Thinking in terms of the expenditure approach to calculate GDP, then GDP...
Suppose consumption increases by $100m, all of which is spent on imports. Thinking in terms of the expenditure approach to calculate GDP, then GDP will:
(a)Decrease by $100m.
(b)Decrease by more than $100m.
(c)Increase by $100m.
(d)Increase by more than $100m.
(e)Be unchanged
Im not sure if its a , be or e . Can you please give me the correct answer and provide explanation and working out please
