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Economics
MEDIUM
ENGLISH
Economics
How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?
Consumption in increase by Rs40,000 and net export decreases by Rs40,000
Correct answer
B
Net exports increase by Rs40,000
Option B
C
There is no impact because this transaction does not involve domestic production
Option C
D
Investment increased by Rs40,000 and net exports increases by Rs40,000
Option D
Correct answer: A
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