The table presents four combinations of price changes that could influence a country’s terms of trade. Which combination of price changes has to lead to an improvement in the country’s terms of trade?
- Aaverage price of exports: falls; average price of imports: falls
- Baverage price of exports: falls; average price of imports: rises
- Caverage price of exports: rises; average price of imports: falls
- Daverage price of exports: rises; average price of imports: rises