Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

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

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