All Else Being Equal, If the Rate of Growth in Productivity

question 72

Multiple Choice

All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in Canada, the euro

• A)will decrease in value relative the Canadian dollar.
• B)will increase in value relative to the Canadian dollar.
• C)will first increase then decrease in value relative the Canadian dollar.
• D)will first decrease then increase in value relative to the Canadian dollar.
• E)will be unaffected by the change in productivity.

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