Which of the following statements is true about terms of trade?

Which of the following statements is true about terms of trade?
  • A.
    Terms of trade shows the difference between the values of export and imports
  • B.
    Terms of trade indicate the rate at which exports exchange for imports
  • C.
    It is the ration of price index of exports to imports
  • D.
    It is usually expressed as percentage
  • E.
    A rise in the price of export relative to imports is an improvement
Correct Answer: Option C
Explanation
You May Also Like