4. When Western Union, a U.S. firm, charges a 10% fee for a Mexican citizen in the United States to send $1?

Question

4. When Western Union, a U.S. firm, charges a 10% fee for a Mexican citizen in the United States to send $1,000 to Mexico:

A. U.S. GDP increases by $100

B. Mexico's GDP increases by $1,000

C. Mexico's GDP decreases by $100

D. U.S. GDP decreases by $1,000

Answer 1

A. U.S. GDP increases by $100