Author Question: An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is ... (Read 77 times)

joesmith1212 · **on:** Jun 30, 2018

An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is

A) earnings of a Spanish factory with British owners counts only in Spain's GDP.
B) earnings of a Spanish factory with British owners counts only in Britain's GNP.
C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP.
D) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP.
E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.

Question 2

If inflation in the rest of the world is lower than inflation in Brazil, Brazil's currency (the real) would tend to appreciate.

Indicate whether the statement is true or false