An Increase in Productivity in a Country Will Cause Its

question 22

Multiple Choice

An increase in productivity in a country will cause its currency to ________ because it can produce goods at a ________ price,everything else held constant.

• A)depreciate;lower
• B)appreciate;lower
• C)depreciate;higher
• D)appreciate;higher

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Definitions:

Deduction

A logical process in which a conclusion follows necessarily from the premises presented, moving from general principles to specific instances.

Abduction

Reasoning from an observed effect to possible causes.

Hypothesis

A tentative explanation or prediction that can be tested through research and experimentation.