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If the US Rate of Productivity Growth Is Less Than the Rate

Question 57

Multiple Choice

If the U.S. rate of productivity growth is less than the rate of Canadian productivity growth, then we would expect


A) the Canadian dollar to appreciate against the U.S. dollar.
B) the Canadian dollar to depreciate against the U.S. dollar.
C) interest rates in Canada to be higher than interest rates in the U.S.
D) the price level in Canada to be increasing more rapidly than the price level in the U.S.

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