A Term-Of-Trade Index That Equals 90 Indicates That Compared to the Base

Multiple Choice

A term-of-trade index that equals 90 indicates that compared to the base year,

A) it requires a greater output of domestic goods to obtain the same amount of foreign goods.
B) it requires a lesser amount of domestic goods to obtain the same amount of foreign goods.
C) the price of exports has fallen from $100 to $90.
D) the price of imports has fallen from $100 to $90.