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A Brazilian Company Produces Soccer Balls in Canada and Exports

Question 143

Multiple Choice

A Brazilian company produces soccer balls in Canada and exports all of them. If the price of the soccer balls increases, what happens to the GDP deflator and the CPI?


A) The GDP deflator and the CPI both increase.
B) The GDP deflator is unchanged, but the CPI increases.
C) The GDP deflator increases, but the CPI is unchanged.
D) The GDP deflator and the CPI are both unchanged.

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