Economics 9708 · AS & A Level · 6.3

6.3 — practice question

A country's terms of trade have improved. Which combination of price movements would have led to this?

  • Aaverage price of exports decrease 4%; average price of imports decrease 6%
  • Baverage price of exports decrease 4%; average price of imports unchanged
  • Caverage price of exports increase 4%; average price of imports increase 6%
  • Daverage price of exports unchanged; average price of imports increase 2%

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