Question

If an american student purchases a calculator made by a mexican owned company located in arizona, what would happen to consumption and gdp of the usa as a result?

Answer 1

They would increase.

Supposing that the Mexican owned company stays in the USA for more than a year, the student's expenditure will be accepted.

Answer 2

Answer:

The consumption and the GDP of the USA will Improve

Explanation:

The Mexican owned company is located in Arizona and pays taxes to the Government of the USA for doing business in America. the more business they are involved in the more they continue to pay taxes to the Government which will in turn affect the GDP ( Gross domestic product ) of the country and consumption rate .

the gross domestic product of a country is the total market value/monetary value of goods and services produced in a country within a specific time. the purchase made by the American student contributes to the total monetary value positively hence GDP and consumption will improve