There Will Be a Favourable Change in a Nation's Terms

question 103

Multiple Choice

There will be a favourable change in a nation's terms of trade if the

• A)export and import prices rise by the same amount.
• B)export price index rises by more than the import price index.
• C)import price index rises by more than the export price index.
• D)export and import prices fall by the same amount.
• E)export and import prices stay the same.

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Definitions:

Fiscal Year

A fiscal year is a 12-month period that companies and governments use for accounting and budget purposes, which may or may not align with the calendar year.

Cash Dividends

The portion of a company's earnings that is distributed to shareholders in the form of cash payments.

Fiscal Year

A 12-month period used for accounting purposes, which may not necessarily align with the calendar year.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends money during a specific period.