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:

Node

A point in a plant where leaves, branches, or stems originate.

Trichomes

Hair-like outgrowths on the epidermis of plants, serving various functions such as reducing water loss and providing protection against herbivores.

Herbivores

Organisms that eat primarily plants or plant-based materials.

Water Absorption

The process by which water is taken up by plants from the soil through their roots to maintain hydration and support physiological processes.