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If a US-Owned Manufacturing Firm Closes Its American Plant and Moves Its

Question 10

Multiple Choice

If a U.S.-owned manufacturing firm closes its American plant and moves its production facilities and American employees to Canada,


A) U.S. GDP falls and U.S. GNI rises
B) U.S. GNP falls, and Canadian GNI rises
C) Canadian GDP rises and Canadian GNI is unchanged
D) Real U.S. GDP rises but nominal U.S. GDP falls
E) None of the above

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