138k views
5 votes
Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000, but does not increase GDP.

1 Answer

1 vote

Answer:

Because the money goes to the foreign country and none of the money goes to America.

User Gabriel M
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.