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A fall in the average price of exports will basically worsen the terms of trade or with other things unchanged, a rise in the average price of imports.
The terms of trade will not be improved by this event; on the contrary, they will be made worse.
A rise in the average price of imports or a decline in the average price of exports make it impossible to increase the frontier of production possibilities.
Additionally, if other factors remain the same, the production possibilities frontier won't contract if exports average prices decline while import average prices increase.
All other things being equal, determining a set of equilibria enables one to forecast how much a nation will import at various international prices as well as how much it will export in excess of its domestic consumption at various international prices.
Discover how the exchange rate for a country's currency affects its terms of trade: https://brainly.com/question/19138319
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