Jake, Sr. sells the family business, a factory that produces snake oil, to Jake, Jr., for $100, even though the factory has been assessed at $400,000. How will this transaction affect GDP?

A. Investment will increase by $100.
B. Investment will increase by $400,000.
C. Consumption will increase by $400,000.
D. GDP will not be affected by the transaction.


D. GDP will not be affected by the transaction.

Economics

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