Q
How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?
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A
A. Consumption in increase by rs40,000 and net export decreases by rs40,000
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B
B. Net exports increase by rs40,000
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C
C. There is no impact because this transaction does not involve domestic production
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D
D. Investment increased by rs40,000 and net exports increases by rs40,000
Correct Answer:
A. A. Consumption in increase by rs40,000 and net export decreases by rs40,000
