An improvement in a country's terms of trade means that the _____________
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Correct Answer: Option C
Explanation:
Terms of trade measure the ratio between the index of export prices and the index of import prices. If a country's terms of trade improve, it means that for every unit of exports sold it can buy more units of imported goods. This means its exports values exceed that of its imports.
Terms of trade measure the ratio between the index of export prices and the index of import prices. If a country's terms of trade improve, it means that for every unit of exports sold it can buy more units of imported goods. This means its exports values exceed that of its imports.