If prices of a nation's exported products rise in comparison to prices paid for imports, that nation experiences a:
a. rise in its international terms of trade.
b. decline in its international terms of trade.
c. reduction in its imports.
d. reduction in its exports.
Ans: a. rise in its international terms of trade.
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The demand curve for shares of a stock is typically
a. downward sloping, because people calculate present value according to different expectations and attitudes toward risk b. vertical, because only a fixed number of shares of stock are available c. horizontal, because everyone values the stock according to its present value d. upward sloping, because a higher stock price signals to potential shareholders that the firm is more valuable e. horizontal, because no one is willing to pay more than the market price
Changes in relative prices during inflationary periods usually lead to
A. decreases in real income. B. some people gaining real income. C. increases in the purchasing power of money. D. increases in real income.