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

Multiple Choice

In a two-good,one-period model,when the terms of trade move in your favour,

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