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If Mexico's Labor Productivity Rises Relative to Europe's Labor Productivity

Question 109

Multiple Choice

If Mexico's labor productivity rises relative to Europe's labor productivity:


A) The peso tends to depreciate against the euro in the short run
B) The peso tends to appreciate against the euro in the short run
C) The peso tends to depreciate against the euro in the long run
D) The peso tends to appreciate against the euro in the long run

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