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      Question

      The index of import prices stands at 120 and that of

      exports is 156. What is the terms of trade
      A 1.30 Correct Answer Incorrect Answer
      B 0.769 Correct Answer Incorrect Answer
      C 1.20 Correct Answer Incorrect Answer
      D 1.56 Correct Answer Incorrect Answer

      Solution

      Terms of Trade  = Price of Exports/Price of Imports                                               = 156/120 = 1.30

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