Economics 9708 · AS & A Level · 6.3

6.3 — practice question

What would cause the terms of trade to improve?

  • AExport prices fall by 10% and import prices fall by 5%.
  • BExport prices fall by 10% and import prices rise by 5%.
  • CExport prices rise by 5% and import prices rise by 10%.
  • DExport prices rise by 10% and import prices rise by 5%.

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