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Which of the Following Would Probably Cause the CPI to Rise

Question 39

Multiple Choice

Which of the following would probably cause the CPI to rise more than the GDP deflator in the UK? An increase in the price of:


A) BMWs produced in Germany and sold in the UK.
B) Peugeots produced in the UK.
C) Helicopters purchased by the Royal Navy.
D) Domestically produced armoured vehicles sold exclusively to India.

Correct Answer:

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