Explain which expenditure category of GDP changes and the direction of the change that results for each transaction described.
a. A domestic business purchases a domestically produced computer to use in a business office.
b. A domestic business produces a computer that is sold to a foreign company.
c. The federal government purchases a domestically produced computer to use in a court house.
d. A domestic household purchases a domestically produced computer to use in a home.
e. A domestic household purchases a computer produced in a foreign country to use in a home.

Question

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The Answer of Explain which expenditure category of GDP changes and the direction of the change that results for each transaction described.
a. A domestic business purchases a domestically produced computer to use in a business office.
b. A domestic business produces a computer that is sold to a foreign company.
c. The federal government purchases a domestically produced computer to use in a court house.
d. A domestic household purchases a domestically produced computer to use in a home.
e. A domestic household purchases a computer produced in a foreign country to use in a home.

Explain Which Expenditure Category of GDP Changes and the Direction