If the U.S. export price index is 120 and its import price index is 105, its terms of trade is:
A) 15.
B) -15.
C) 114.2.
D) 87.5.
E) None of the above

Name: If the U.S. export price index is 120 and its import price index is 105, its terms of trade is: A) 15. B) -15. C) 114.2. D) 87.5. E) None of the above
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Quizplus · Accepted Answer

The terms of trade is calculated by dividing the export price index by the import price index and then multiplying by 100. So, $ \frac{120}{105} \times 100 = 114.2857 $, which rounds to 114.2.

If the US Export Price Index Is 120 and Its Import Price