Mikey likes bagels, so he buys an old pizza shop for $150,000 and spends $10,000 installing new equipment which will allow him to make bagels instead of pizza. How will Mikey's recent purchases affect GDP?

Mikey likes bagels, so he buys an old pizza shop for $150,000 and spends $10,000 installing new equipment which will allow him to make bagels instead of pizza. How will Mikey's recent purchases affect GDP? 




A. Investment will increase $160,000.

B. Investment will increase $150,000, and consumption will increase $10,000.

C. Consumption will increase $150,000, and investment will increase $10,000.

D. Investment will increase $10,000.





Answer: D


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