All other things equal,if a nation's terms of trade deteriorate,to maintain the same quantity of imports,the nation

Question

Quizplus · Accepted Answer

If a nation's terms of trade deteriorate, it means that the prices of its exports are falling relative to the prices of its imports. In order to maintain the same quantity of imports, the nation would have to export a greater quantity of goods to earn the same amount of foreign currency. This would help the nation to mitigate the negative impact of the deterioration in its terms of trade.

All Other Things Equal,if a Nation's Terms of Trade Deteriorate,to