Which of the following would increase U.S.GDP?
A)The city government of New York buys file cabinets directly from a Mexican company.
B)A Mexican citizen buys stock in a U.S.company.
C)A Japanese automobile company produces cars within the U.S.
D)A U.S.automobile company produces cars in a foreign country.

Question

Quizplus · Accepted Answer

When a foreign company produces goods or services within the U.S., it increases the GDP of the U.S. As a Japanese automobile company producing cars within the U.S. is mentioned in option C, it will increase U.S. GDP.

Answer: D 
 When a U.S. company produces goods or services in a foreign country, it will not increase the GDP of the U.S. As a U.S. automobile company producing cars in a foreign country is mentioned in option D, it will not increase U.S. GDP.

Options A and B do not necessarily increase the U.S. GDP, so they are not the best choices.

Which of the Following Would Increase U.S.GDP