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If a Canadian Citizen Buys a Smart Phone Made in China

Question 17

Multiple Choice

If a Canadian citizen buys a smart phone made in China by a Chinese firm, what is the impact on net exports and GDP?


A) Canadian net exports and Canadian GDP decrease.
B) Canadian net exports are unaffected, but Canadian GDP decreases.
C) Canadian net exports and Canadian GDP are unaffected.
D) Canadian net exports decrease, but Canadian GDP is unaffected.

Correct Answer:

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