Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple Macbook before heading off to college in the fall. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a durable good.
B. Investment will go up by $1,500, because a computer is a durable good.
C. GDP will not be affected, since Ace acquired the computer with scholarship money.
D. Consumption will go up by $1,500, because a computer is a nondurable good.
Answer: A
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