Multiple Choice
Which of the following is true, according to the Prebisch-Singer hypothesis?
A) Trade surpluses help reduce the price volatility of industrial goods.
B) Commodity prices are directly proportionate to industrial output.
C) Industrial goods do not move as quickly when commodity prices are volatile.
D) Commodity prices earn less over time than industrial goods prices.
E) Industrial goods prices are more volatile than commodity prices.
Correct Answer:
Verified
Correct Answer:
Verified
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