The tables present how the average prices of a country’s exports and imports changed across a period. These figures are given as index numbers, using year 0 as 100. export price index: year0 100, year1 115, year2 125. import price index: year0 100, year1 120, year2 125. By how much does the country’s terms of trade index change from year 1 to year 2?
- AIt improves by about 10%.
- BIt improves between 4% and 5%.
- CIt stays the same.
- DIt worsens between 4% and 5%.