In a Two-Good,one-Period Model,when the Terms of Trade Move Against

Multiple Choice

In a two-good,one-period model,when the terms of trade move against you,

A) exports unambiguously decrease and imports unambiguously increase.
B) the effect on exports is uncertain and imports unambiguously decrease.
C) the effect on exports is uncertain and imports unambiguously increase.
D) the effects on both exports and imports is uncertain.
E) exports and imports unambiguously increase.