In a two-good,one-period model,when the terms of trade move in your favor,the welfare of the representative consumer

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When the terms of trade move in the favor of the representative consumer, it means that the price of the commodity that the consumer is exporting has increased relative to the price of the commodity that the consumer is importing. This leads to an increase in the consumer's purchasing power, which leads to higher welfare. Therefore, the welfare of the representative consumer unambiguously increases.

In a Two-Good,one-Period Model,when the Terms of Trade Move in Your