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The Price of Imported Silk Dresses Produced by a Canadian

Question 87

Multiple Choice

The price of imported silk dresses 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,but the CPI will be unaffected.
C) The GDP deflator and the CPI will both be unaffected.
D) The GDP deflator will be unaffected,but the CPI will increase.

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