If Apple issues debentures to finance the building of a factory, only the value of the factory will be included in the GDP. True or False?
FALSE: there are investment bankers, brokers and lawyers involved & their fees will be included in GDP
False.
When Apple issues debentures to finance the building of a factory, the initial transactions will involve the sale of the debentures, which is recorded in the financial market and is not counted as a part of the GDP. However, when the factory is built and the production begins, the value of the goods and services produced by the factory will be included in the GDP.
Therefore, only the value of the factory itself is not included in the GDP, but the goods and services produced by the factory are included as a part of the GDP.
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