In a Two-Good,one-Period Model,when the Terms of Trade Move in Your

question 14

Multiple Choice

In a two-good,one-period model,when the terms of trade move in your favour,

• A) exports unambiguously increase and imports unambiguously decrease.
• B) the effect on exports is uncertain and imports unambiguously increase.
• C) the effect on exports is uncertain and imports unambiguously decrease.
• D) the effects on both exports and imports is uncertain.
• E) exports and imports unambiguously increase.

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Definitions:

Rare

Uncommon or infrequent in occurrence; something that is not found in a high frequency or quantity.

Gelatinous Consistency

A characteristic of a substance having a jelly-like texture, often found in various biological tissues.

Glycosaminoglycans

Long linear polysaccharides found in the extracellular matrix and cell surfaces, important for the structural integrity of tissues.

Collagen

A protein that provides structure and strength to various connective tissues in the body, including skin, ligaments, tendons, and bones.