International Monetary Fund Data Indicate That, with 2005 = 100

question 9

Multiple Choice

International Monetary Fund data indicate that, with 2005 = 100.0, Thailand's export price index for 2011 was 104.7 and Thailand's import price index for 2011 was 111.1. Further, with 2005 = 100.0, the export price index for 2011 for the United Kingdom was 118.5 and the import price index for 2011 for the United Kingdom was 121.0. With this information, an economist would say that, from 2005 to 2011, Thailand experienced __________ in its commodity terms of trade and the United Kingdom __________ in its commodity terms of trade.

• A) a deterioration; also experienced a deterioration
• B) a deterioration; experienced an improvement
• C) an improvement; experienced a deterioration
• D) an improvement; also experienced an improvement

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