a13.docx - Problem An American buys a pair of shoes...

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ProblemAn American buys a pair of shoes manufactured in Italy. How do the U.S. national income accounts treat the transaction? a. Net exports and GDP both rise.b. Net exports and GDP both fall.c. Net exports fall, while GDP is unchanged.d. Net exports are unchanged, while GDP rises. Step-by-step solution 1. Step 1 of 4 Composition of GDP: Comment 2.

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