Over time, the terms of trade of Latin American countries have generally ________, and the terms of trade of developed countries have generally ________.
A) worsened; worsened
B) worsened; improved
C) improved; worsened
D) improved; improved
Question 2
Which of the following is NOT true about this national income equation:
A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case.
B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving.
C) For the current account, CA, to improve, the government may have to run budget surplus.
D) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.
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