Suppose That Average Productivity of Chinese Firms Increases More Rapidly

Multiple Choice

Suppose that average productivity of Chinese firms increases more rapidly than the average productivity of Australian firms, then:

A) production costs in China fall, quantity demanded for Chinese products rises and the value of yuan falls against the dollar.
B) production costs in China rise, quantity demanded for Chinese products falls and the value of yuan falls against the dollar.
C) production costs in China fall, quantity demanded for Chinese products rises and the value of yuan rises against the dollar.
D) production costs in China rise, quantity demanded for Chinese products rises and the value of yuan rises against the dollar.