If Domestic and Foreign Prices Rise by the Same Relative

question 36

Multiple Choice

If domestic and foreign prices rise by the same relative amount, what will happen to the trade balance?

• A) It will rise.
• B) Nothing will happen.
• C) It will fall.
• D) Not enough information is provided to answer the question.

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Definitions:

Vascular Cambium

A layer of plant tissue located between the xylem and phloem that contributes to secondary growth by producing new layers of vascular tissue.

Apical Meristem

A region of actively dividing cells at the tips of plant roots and shoots, responsible for primary growth.

Lateral Meristems

Plant tissue found in the stems and roots of woody plants contributing to the increase in thickness (secondary growth) through cell division.

Secondary Growth

Growth in thickness or girth of a plant, resulting from the activity of the lateral meristems.