An Indian student paid $16,000 for a course at a university in the United States.This transaction led to a(n)________.
A) increase in the GDP of India
B) decrease in India's trade deficit
C) increase in the U.S. GDP
D) decrease in the U.S. GDP

Question

Quizplus · Accepted Answer

The transaction of the Indian student paying $16,000 for a course at a university in the United States will lead to an increase in the U.S. GDP as it is a monetary transaction within the U.S. economy. It will not directly affect the GDP of India and neither will it have any impact on the trade deficit of India.

An Indian Student Paid $16,000 for a Course at a University