If the German automobile manufacturer, Volkswagen, builds a new factory to produce Volkswagens in Pennsylvania, which component of GDP would be affected?

A. Investment
B. Government spending
C. Consumer spending
D. Net exports



Answer :

Final answer:

Building a new factory by Volkswagen in Pennsylvania would affect the investment component of GDP.


Explanation:

Investment would be the component of GDP affected if Volkswagen builds a new factory in Pennsylvania. Investment refers to business spending on capital goods like factories, equipment, and technology. This action by Volkswagen to build a new factory represents a significant investment in the economy.


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