In a Two-Good,one-Period Model,an Increase in the Terms of Trade

Multiple Choice

In a two-good,one-period model,an increase in the terms of trade when Good a is initially imported is caused by

A) the price of Good a falling relative to Good b.
B) the price of Good a rising relative to Good b.
C) the consumption of Good a rising.
D) the production of Good b falling.
E) a current account deficit occurring.