Suppose an Index of Average Prices of Imported Goods in Canada

Multiple Choice

Suppose an index of average prices of imported goods in Canada indicates an increase in price of 2.3% over a 12-month period.Over the same period the Consumer Price Index indicates an increase in the general price level of 2.3%.What is the change in the price of imports relative to the change in the overall price level?

A) an increase of 2.3%
B) an increase of 4.6%
C) a decrease of 2.3%
D) a decrease of 4.6%
E) no change