Consider Canada's terms of trade.Canadians consume millions of cups of Tim Horton's coffee each year.If Tim Horton's reduced the price per cup of coffee (because of a decrease in administration and transportation costs) ,ceteris paribus,Canada's terms of trade will
A) improve.
B) deteriorate.
C) deteriorate as long as consumption of coffee increases.
D) improve as long as consumption of coffee decreases.
E) not change.
Correct Answer:
Verified
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