What combination of movements in export prices and import prices would lead to an improvement in a country’s terms of trade?
- Aaverage export prices decrease by 5%; average import prices decrease by 10%
- Baverage export prices decrease by 10%; average import prices decrease by 5%
- Caverage export prices decrease by 10%; average import prices increase by 5%
- Daverage export prices increase by 5%; average import prices increase by 10%