Ace has always been a top student,so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses.Ace decides to spend his scholarship money on a new Apple Macbook before heading off to college in the fall.How will GDP be affected by Ace's recent purchases?
A) Consumption will go up by $1,500,because a computer is a durable good.
B) Investment will go up by $1,500,because a computer is a durable good.
C) GDP will not be affected,since Ace acquired the computer with scholarship money.
D) Consumption will go up by $1,500,because a computer is a nondurable good.
Correct Answer:
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