Suppose That Imports and Exports in an Industry Are $100

question 48

Multiple Choice

Suppose that imports and exports in an industry are $100 million
And $200 million, respectively.Will the index of intra­industry
Trade for this industry rise, fall, or remain unchanged if exports
Fall to $100 million?

• A)It will rise.
• B)It will fall.
• C)It will remain unchanged.
• D)There is not enough information to determine how the index will change.