Previous que Which of the following statements is TRUE? A. Import-biased growth expands a country's production possibilities in the direction of the good it exports. B. Import-biased growth tends to worsen a growing country's terms of trade to the benefit of the rest of the world. C. Export-biased growth tends to improve a growing country's terms of trade at the rest of the world's expense. D. Export-biased growth tends to worsen a growing country's terms of trade to the benefit of the rest of the world. Increased trade with China between 2000 and 2007 induced large reductions in U.S. import prices, A. generating substantial increases in the purchasing power of U.S. households. OB. creating neither gains nor losses for U.S. consumers. C. generating substantial decreases in the purchasing power of U.S. households. OD. creating a loss of $1,500 on average in purchasing power per U.S. household per year. Has the United States suffered from a deterioration in its terms of trade as some of its main trading partners, especially China, experienced rapid growth? A. Yes, there is evidence that the United States has suffered some sustained loss from a long-term deterioration in its terms of trade. B. No, there is no evidence that the United States has suffered any kind of sustained loss from a long-term deterioration in its terms of trade. OC. No, there is no evidence that China's terms of trade have steadily appreciated as China has become increasingly integrated into the world econom OD. Yes, there is evidence that China's terms of trade have deteriorated over the past decade. The effect of an export subsidy is to OA. give producers an incentive to export. OB. make it less profitable to sell abroad than at home. OC. raise government revenue. OD. raise the prices of exported goods outside a country.