In 2023 Hans, a German citizen, took a business trip to Hawaii and purchased software for his online trading business for $20,000. He also paid $300 to a local software engineer in Hawaii for a demonstration of how to use the software. Which of the following is correct for GDP in 2023? Group of answer choices German investment rose by $20,000. US exports rose by $20,300. German imports rose by $20,000. German investment rose by $20,000. German imports rose by $20,300. German investment rose by $20,300. German imports rose by $20,300. German investment rose by $20,000. German consumption rose by $300. German imports rose by $20,000. US exports rose by $20,300.
Question
In 2023 Hans, a German citizen, took a business trip to Hawaii and purchased software for his online trading business for 300 to a local software engineer in Hawaii for a demonstration of how to use the software. Which of the following is correct for GDP in 2023?
Group of answer choices
German investment rose by 20,300.
German imports rose by 20,000.
German imports rose by 20,300.
German imports rose by 20,000. German consumption rose by $300.
German imports rose by 20,300.
Solution
The correct answer is: German imports rose by 20,000.
Here's why:
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Hans, a German citizen, purchased software for his online trading business for 20,000.
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Hans also paid 20,000 (for the software) + 20,300.
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The 20,000.
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The $300 that Hans spent on the demonstration is not considered an investment because it is a one-time expense that is not expected to generate future income. Therefore, it does not affect the amount of German investment.
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The question does not provide any information about changes in German consumption or US exports, so we cannot make any conclusions about these variables based on the information provided.
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