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
Correct Answer:
Verified
Correct Answer:
Verified
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