We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
Click here to Donate Now (View Announcement)
Exactly, devaluation RAISES the prices of imports.
Yaay.
yes loss of skills means decline in productivity so it wont be efficient, so it affects long term PPF
Yes, I also answered Long Run PPF!
okaay? if they asked for what reduces it definitely has to be terms of trade... i dont remember the question asked for increase or decrease though!
Doesn't the value of imports decrease coz they become expensive?
Yes but the Terms of Trade formula relates to Price and not value!
Aaahit was no substitutes!
haha good for you!
they do become expensive but DEVALUATION raises the PRICE, DEPRECIATION decreases the VALUE.
Yed[/quote]
it relates to price yes but its a price INDEX not just a price... i think
But now mopre money will be required to buy imported doso they have to decrease in value just like like currencies
Yed[/quote]
You're right! It's a price index, which is an average price of all goods and services being imported and exported!
exactly bro!
For almost 10 years, the site XtremePapers has been trying very hard to serve its users.
However, we are now struggling to cover its operational costs due to unforeseen circumstances. If we helped you in any way, kindly contribute and be the part of this effort. No act of kindness, no matter how small, is ever wasted.
Click here to Donate Now