Question

if british petroleum builds a new plant in louisiana, .a. in the future, u.s. gdp will rise more than u.s. gnp b. in the future, u.s. gdp will rise less than u.s. gnp c. in the future, u.s. gdp and gnp will both fall because some income from this investment will accrue to foreigners d. there has been an increase in foreign portfolio investment in the united states e. none of the answer choices are correct

Answer 1

The correct answer is c. In the future, U.S. GDP and GNP will both fall because some income from this investment will accrue to foreigners.

Step-by-step explanation:

The correct answer is c. In the future, U.S. GDP and GNP will both fall because some income from this investment will accrue to foreigners.

When British Petroleum builds a new plant in Louisiana, it will result in an increase in foreign direct investment in the United States. This means that some income generated by the plant will go to foreigners. As a result, both U.S. GDP (gross domestic product) and GNP (gross national product) will fall.

GDP measures the total value of goods and services produced within a country's borders, while GNP measures the total value of goods and services produced by a country's residents, regardless of location.