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Consider the "Terms of Trade" of a Trading Nation

Question 119

Multiple Choice

Consider the "terms of trade" of a trading nation.There will be a favourable change in the nation's terms of trade if the


A) export and import prices rise by the same amount.
B) export price index rises by more than the import price index.
C) import price index rises by more than the export price index.
D) export and import prices fall by the same amount.
E) export and import prices stay the same.

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