If the Rate of Growth of U

question 14

Multiple Choice

If the rate of growth of U.S. productivity lags behind the rate of growth of productivity in most other countries,

• A)the prices of U.S. goods will fall relative to foreign goods.
• B)the prices of U.S. goods will rise relative to foreign goods.
• C)the U.S. real exchange rate will appreciate.
• D)the cost of producing U.S. goods will rise more slowly than the cost of producing foreign goods.