There is a tendency for inflation rates to fall in countries that use inflation targeting.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Assume that initially country A exchanges three barrels of oil for one ton of steel from country B. Later the arrangement changes to four barrels of oil for one ton of steel. This indicates that:
a. the terms of trade for country B have improved.
b. country A has a comparative advantage in the production of steel.
c. the relative price of steel in terms of oil has fallen.
d. the terms of trade for country A have improved.
e. country B has an absolute advantage in the production of oil.
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