Assume That Labor Productivity Growth Is Slower in the United

Multiple Choice

Assume that labor productivity growth is slower in the United States than in its trading partners.Given a system of floating exchange rates, the impact of this growth differential for the United States will be

A) increased exports and an appreciation of the dollar.
B) increased exports and a depreciation of the dollar.
C) increased imports and an appreciation of the dollar.
D) increased imports and a depreciation of the dollar.