John buys a used car for $5,400 and spends $600 on new parts, made in the U.S., to fix the car. The end result of these two transactions is
A) U.S. consumption purchases increase by $5,400 and U.S. GDP increases by $5,400.
B) U.S. consumption purchases increase by $6,000 and U.S. GDP increases by $6,000.
C) U.S. consumption purchases increase by $600 and U.S. GDP increases by $600.
D) U.S. consumption purchases increase by $600 and U.S. GDP increases by $6,000.
Correct Answer:
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