If the US Rate of Productivity Growth Is Less Than the Rate

question 92

Multiple Choice

If the U.S. rate of productivity growth is less than the rate of Canadian productivity growth, then we would expect

• A)the Canadian dollar to appreciate against the U.S. dollar.
• B)the Canadian dollar to depreciate against the U.S. dollar.
• C)interest rates in Canada to be higher than interest rates in the U.S.
• D)the price level in Canada to be increasing more rapidly than the price level in the U.S.

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Definitions:

Facility Locations

Facility Locations pertain to the strategic positioning of business locations, such as factories, warehouses, and offices, considering factors like costs, logistics, and proximity to markets.

Shipping Costs

The expenses associated with transporting goods from one location to another.

Feasible Solution

A potential solution to a problem that meets all the constraints and requirements of the situation or mathematical model.

Demand Constraints

Limitations on the amount of goods or services that can be demanded, often influenced by factors such as price, income, and market competition.