An economy’s terms of trade declined from 100 in the base year to 90. What movements in the export price index and the import price index could have led to this?
- Aexport price index change: 0; import price index change: –10
- Bexport price index change: 0; import price index change: +10
- Cexport price index change: –10; import price index change: 0
- Dexport price index change: –10; import price index change: +10