Day: June 6, 2022

When is an economy likely to experience a deterioration in its terms of trade?

Select ONE answer:

1. when demand for its exports increases
2. when the trade weighted value of its currency depreciates
3. when the interest rate is increased
4. when there is a fall in the average price of its imports

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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