How is your purchase of a €40,000 BMW automobile that was produced entirely in Germany recorded in the UK GDP accounts?

Question

Answer

Net exports increases by €40,000.

Answer

Net exports decreases by €40,000.

Answer

There is no impact because this transaction does not involve domestic production.

Answer

Investment increases by €40,000 and net exports increases by €40,000.

Answer

Consumption increases by €40,000 and net exports decreases by €40,000.

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