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Question
The owner of an oil well in Texas sells 1000 barrels of oil to a refinery in Mexico for $12,000 for refining. This transaction
A) will increase Gross Domestic Product (GDP) by $12,000.
B) has no effect on Gross Domestic Product (GDP) because the refinery is in Mexico.
C) decreases Gross Domestic Product (GDP) because oil reserves have fallen by 1000 barrels.
D) has no effect on Gross Domestic Product (GDP) because this is the sale of an intermediate product.
Answer
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