Question on: SS3 Economics - Measurement of Terms of Trade

How is the terms of the trade index calculated?

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A

Index of export prices divided by index of import prices, then multiplied by 100

B

Index of import prices divided by index of export prices, then multiplied by 100

 

C

Index of export prices multiplied by index of import prices, then divided by 100

D

Index of import prices multiplied by index of export prices, then divided by 100

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Correct Option: A

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