A Terms-Of-Trade Index That Equals 150 Indicates That Compared to the Base

question 75

Multiple Choice

A terms-of-trade index that equals 150 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 risen from $100 to $150.
• D) the price of imports has risen from $100 to $150.

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