An Increase in a Country's Net Commodity Terms of Trade

question 9

Multiple Choice

An increase in a country's net commodity terms of trade will

• A) not always guarantee positive changes in the country's economy.
• B) always increase the country's economic welfare.
• C) always increase the country's real income.
• D) never increase the country's quantity of exports.
• E) always increase the country's production of its import competing good.

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Definitions:

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