An increase in the terms of trade:

Name: An increase in the terms of trade:
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An increase in the terms of trade means that a country can sell its exports at a higher price relative to the price it pays for imports. This leads to an increase in the value of the country's exports, which in turn raises real GDP. B and C are not true; an increase in the terms of trade does not necessarily lead to a decrease in consumption or a lowering of real national saving.

An Increase in the Terms of Trade