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Which of the Following Conditions Would Inhibit the Balassa-Samuelson Effect

Question 7

Multiple Choice

Which of the following conditions would inhibit the Balassa-Samuelson effect?


A) Slower productivity growth in services than manufacturing
B) A relatively large service sector compared to the manufacturing sector
C) The inability to import or export services
D) The immobility of labor between manufacturing and service sectors
E) Technological improvements in manufacturing

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