If the Prices of New Zealand Wool Blankets Imported into Canada

Multiple Choice

If the prices of New Zealand wool blankets imported into Canada increase, what happens to the GDP deflator and the CPI?

A) The GDP deflator does not change; the CPI decreases.
B) The GDP deflator decreases; the CPI increases.
C) The GDP deflator and the CPI decrease.
D) The GDP deflator does not change; the CPI increases.