If the Rate of Growth of U

question 73

Multiple Choice

If the rate of growth of U.S. productivity is higher than the rates 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 depreciate.
• D)the cost of producing U.S. goods will rise faster than the cost of producing foreign goods.

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Definitions:

Product Category

A classification of products or services that share similar characteristics or are aimed at fulfilling similar needs and demands.

Diffusion of Innovation

This concept describes how, why, and at what rate new ideas and technology spread through cultures.

Spreads through Population

Describes how a product, trend, or information disseminates across different social groups or communities.

Product Class

A broader category that encompasses groups of goods or services that serve a similar function or are targeted to the same consumer segment.