With Floating Exchange Rates,relatively High Productivity Growth for a Nation

question 14

Multiple Choice

With floating exchange rates,relatively high productivity growth for a nation leads to

• A) Exchange rate depreciation in the short run
• B) Exchange rate appreciation in the short run
• C) Exchange rate depreciation in the long run
• D) Exchange rate appreciation in the long run

---

Definitions:

Bankers Trust

was a historic American banking organization that was absorbed by Deutsche Bank in 1999, known for its role in financial services and investment banking.

Assets

Economic resources or owned items of value that an individual, corporation, or country possesses, expected to provide future benefits.

Money Supply

The overall pool of money within an economy at a certain time, including all forms of cash, coinage, and funds in checking and savings accounts.

Spanish Currency

The Euro, which is the official currency of Spain, part of the Eurozone countries that have adopted the euro (€) as their legal tender.