Under a System of Floating Exchange Rates, Relatively Low Productivity

Multiple Choice

Under a system of floating exchange rates, relatively low productivity and high inflation rates in the United States result in

A) an increase in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
B) an increase in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.
C) a decrease in the demand for foreign currency, a decrease in the supply of foreign currency, and a depreciation in the dollar.
D) a decrease in the demand for foreign currency, an increase in the supply of foreign currency, and an appreciation in the dollar.