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The Price of Imported Athletic Shoes Produced by a Canadian

Question 86

Multiple Choice

The price of imported athletic shoes produced by a Canadian company operating in Thailand increases. By itself, what effect will this change have on the Canadian GDP deflator and CPI?


A) The GDP deflator and the CPI will both increase.
B) The GDP deflator will increase, and the CPI will be unaffected.
C) The GDP deflator and the CPI will both be unaffected.
D) The GDP deflator will be unaffected, and the CPI will increase.

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