QUESTION 22 1. (Module 10) Consider the following transactions involving the nat

Question

QUESTION 22 1. (Module 10) Consider the following transactions involving the nation of Foxystan. For each of the following, determine which transaction would be added to the current GDP of Foxystan. Explain why or why not

. a. A consumer in Foxystan pays the rent to the owner of his apartment complex.

b. A firm in Foxystan pays wages to a consultant located in the neighboring country of Franklandia.

c. The government of Foxystan has built a new national museum.

d. A consumer in Foxystan sells his used car to a consumer who lives in neighboring Franklandia.

e. A firm in Foxystan pays interest on repayment of a loan from the First Bank of Foxystan. (15 points)

Explanation / Answer

Rent will be included in GDP since it is income for house owner.

B will not be included in GDP since payment to foreigners are subtracted from gdp

C will be included in GDP since it is new addition to products of the country

D will not be included since resale of goods produced in other years are not included in GDP.

Can answer only 4 parts according to chegg policy. Please send other parts as separate question

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