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When a U.S. company purchases and imports automotive parts from Canada to use to build cars within the United States, this purchase increases the investment component of GDP while also net exports by the same amount. Therefore, the purchase of automotive parts from Canada causesno overall change in US GDP. True or false?

Answer :

davrule239

Answer:

True

Explanation:

The purchase of automotive parts from Canada causes no overall change in US GDP is True because a US company did the purchasing and importing of the automotive parts, therefore the investment components rise by the amount of the automotive parts imported, But, the automotive parts in question was imported from Canada, This will cause a declined in the net exports by the value of the automotive parts, thereby leading to changes in the components of GDP which are the investment and the net exports.

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