How Will the Exchange Rate (Foreign Currency Per Dollar)respond to a Decrease

question 171

Multiple Choice

How will the exchange rate (foreign currency per dollar) respond to a decrease in the relative rate of productivity growth in the United States in the long run?

• A)Exchange rates will rise.
• B)Exchange rates will fall.
• C)Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States,both in the short run and in the long run.
• D)The exchange rate will be affected in the short run,but not in the long run.

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Definitions:

Law of Restitution

A legal principle aimed at preventing unjust enrichment, requiring a party to return goods or compensation to another from whom they were unjustly received.

Contract Law

A body of law regulating the formation, performance, and enforcement of contracts between parties.

Repudiates

To reject or deny the validity or authority of something, often associated with contracts or obligations.

Lost Profits

Potential revenue that a business did not earn, often due to breaches of contract, infringement, or other wrongful acts.