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lyxilou
Country’s terms of trade improves if its exports prices rise at a greater rate than its imports. This results in higher revenue which causes a higher demand for the country‘s currency and increase in its currency’s value. (Hope this helps!) :)
Ljmycal

Answer:

Any change in imports or exports will certainly cause a change in the rate of exchange.

Explanation:

If imports exceed exports, the demand for foreign currency rises; hence the rate of exchange moves against the country.

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