Concerning the hypothesis that there has occurred a long run deterioration in the developing countries terms of trade empirical studies provide ?
Correct answer: A. mixed evidence that does not substantiate the deterioration hypothesis
- A. mixed evidence that does not substantiate the deterioration hypothesis
- B. overwhelming support for the deterioration hypothesis
- C. overwhelming opposition to the deterioration hypothesis
- D. None of the above
Explanation
Empirical research on the long-run terms of trade of developing countries has produced mixed results, so it does not conclusively establish a persistent deterioration. The hypothesis is associated particularly with the Prebisch-Singer thesis.
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