Which phrase best completes the diagram? ?
Terms of trade improve
A. Inflation rates increase
B. Trade deficit increases
C. Economic growth decreases
D. Exchange rate increases

Inflation rates increase

Explanation:

Considering the diagram in the question above, and the available answers, the correct answer is option A "Inflation rates increase."

This is based on the fact that when a country or internal inflation increases in comparison to its trading counterparts this will lead to an increase in that country's export prices compared to the rate at which its import prices increase. Hence, this leads to improvement in the trade balance for that particular country.

it maybe, we dont know. however lucky the lipercon seams guilty