A country’s terms of trade rose from the base year figure of 100 to 120 in the next year. What changes in export prices and import prices could have led to this?
- Aexport prices decreased 10%; import prices increased 10%
- Bexport prices increased 10%; import prices decreased 10%
- Cexport prices increased 20%; import prices unchanged
- Dexport prices unchanged; import prices decreased 20%