Question Details

What is meant by “improved terms of trade” 



1. “Aside from the much-needed interest rate relief, the U.S. economy will continue to benefit from significantly improved terms of trade.” What is meant by “improved terms of trade”? 
a)	a balance of trade surplus 
b)	lower tariffs 
c)	higher world prices for our exports relative to our imports 
d)	a higher exchange rate 

2. “The dollar- decline cuts two ways for Americans.” What are these two ways? 
a)	higher exports but higher imports 
b)	lower prices but higher costs 
c)	higher exports but higher prices 
d)	higher imports but lower costs 

3. “The greenback fell against currencies around the world on the stunning decision by the Fed to buy up to $300 billion of long-term US Treasury bonds to help jolt the economy out of its deep depression.” The US dollar fell because 
a)	nobody believed that this would move the US out of its deep depression 
b)	of fears of US inflation 
c)	of the consequent rise in the US interest rate 
d)	the clip is incorrect - the US greenback rose because buying dollars increases their price 



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