If the index of export prices increases from 120 to 150 and the index of import prices increases from 100 to 125, it may be said that
A) there is insufficient information to calculate the terms of trade.
B) there has been no change in the terms of trade.
C) the terms of trade have improved.
D) the terms of trade have improved by 10 percent.
E) the terms of trade have deteriorated.
Correct Answer:
Verified
Q45: The diagram below shows the domestic demand
Q46: The theory that patterns of international trade
Q47: Economies of scale and product differentiation can
Q48: The idea that unit production costs fall
Q51: If two countries each produce wool and
Q52: The diagram below shows the (hypothetical)demand and
Q53: If a product is very inexpensive to
Q54: Canada is a net importer of citrus
Q55: If Canada's terms of trade rise from
Q101: If Canada's index of export prices is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents