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An Increase in a Country's Net Commodity Terms of Trade

Question 1

Multiple Choice

An increase in a country's net commodity terms of trade will


A) always increase the country's real income.
B) not always guarantee positive changes in the country's economy.
C) always increase the country's economic welfare.
D) never increase the country's quantity of exports.
E) always increase the country's production of its import competing good.

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