Assume That Labor Productivity Growth Is Slower in the United

question 178

Multiple Choice

Assume that labor productivity growth is slower in the United States than in its trading partners.Given a system of floating exchange rates,the impact of this growth differential for the United States will be:

• A) Increased exports and an appreciation of the dollar
• B) Increased exports and a depreciation of the dollar
• C) Increased imports and an appreciation of the dollar
• D) Increased imports and a depreciation of the dollar

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Definitions:

Consistent Tendency

A pattern of behavior or thought that is regularly observed in an individual or process over time, indicating a predictable way of responding.

Behavioral Tendency

A predisposition to act or react in a certain manner, often learned from past experiences or shaped by psychological factors.

Self-actualization

The achievement or actualization of one's abilities and capacities, seen as an inherent motivation or necessity in all individuals.

Maslow

A rephrased definition: Psychologist Abraham Maslow, known for formulating the Hierarchy of Needs theory that describes human motivation through various stages of needs.