Question

income terms of trade tells increased capacity to?
a.export
b.import
c.investment​

Answer 1

Answer:

income terms of trade tells increased capacity to import

Answer 2

Income terms of trade tells increased capacity to b.import.

Explanation:

• The income terms of trade (ITT) are an index that compares the value of exports to the unit value (price) of imports.
• G.S. Dorrance and H. Staehle pioneered the concept of income terms of trade.
• This concept is an enhancement above net barter trading terms.
• It considers the export and import price indices, as well as the export quantity index.