Sophia just bought shares of IBM stock for $25,000 and paid a $350 commission to her broker.How did this impact GDP?
A) GDP increased by $25,350
B) GDP increased by $350
C) GDP increased by $25,000
D) GDP increased by $24,650
E) it had no impact on GDP

Question

Quizplus · Accepted Answer

The commission fee of $350 paid to the broker is considered a service, which contributes to GDP. The purchase of existing stock shares does not impact GDP as it is a transfer of ownership, not a new production of goods or services.

Sophia Just Bought Shares of IBM Stock for $25,000 and Paid