If There Is a Reduction in the Price of Large

Multiple Choice

If there is a reduction in the price of large tractors imported into Canada from Russia, what happens to the GDP deflator and the consumer price index?

A) The GDP deflator will decrease, and the consumer price index will increase.
B) The GDP deflator will increase, but the consumer price index will remain unchanged.
C) Both the GDP deflator and the consumer price index will increase.
D) Neither the GDP deflator nor the consumer price index will increase.