If Canada's Index of Export Prices Is 250 and the Index

question 7

Multiple Choice

If Canada's index of export prices is 250 and the index of import prices is 200,then the index of the terms of trade is

• A)125.
• B)80.
• C)50
• D)1.25.
• E)0.8.

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Definitions:

Interest Rates

The proportion of a total amount of money that is levied for its utilization, typically stated on a yearly basis.

Money Supply

The absolute total of money-related assets within an economy at a particular time.

Depository Institutions

Financial institutions that accept deposits from the public and offer lending and other financial services.

Legal Reserve Requirements

Regulations that require banks to keep a certain percentage of their deposits in reserve, either in cash on hand or as deposits with a central bank, to ensure liquidity.