The Meaning of "Terms of Trade" Is

question 45

Multiple Choice

The meaning of "terms of trade" is

• A) the price of a country's exports divided by the price of its imports.
• B) the amount of exports sold by a country.
• C) the price conditions bargained for in international markets.
• D) the quantities of imports received in free trade.
• E) the tariffs in place between two trading countries.

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Definitions:

Fiscal Policies

Government policies related to taxation and spending that aim to influence the economy.

Political Business Cycle

A theory suggesting that electoral cycles influence economic cycles, with policymakers manipulating the economy to improve re-election chances.

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Re-election

is the process by which an official, typically in a political context, wins another term in office through a voting process.