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

Question 103

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

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