Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 27

What is an accurate statement about possible causes and/or consequences of a worsening in a country's terms of trade?

1. AIt will result from a fall in the demand for its exports.
2. BIt will result from an increase in consumers' incomes in its major trading partners.
3. CIt will result in a decrease in interest rates by its major trading partners.
4. DIt will result in an improvement in its balance of trade.

As printed in the paper