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Suppose a Small Country Experiences Economic Growth Which Leads to an Increased

Question 13

Multiple Choice

Suppose a small country experiences economic growth which leads to an increased willingness to trade. The country's terms of trade will _____ because the prices of its exports will _____ relative to the price that it has to pay for its imports.


A) worsen; fall
B) improve; not change
C) remain unaffected; not change
D) remain constant; fall

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