When the quality of one country's products is improving more rapidly than the quality of the products produced in the rest of the world, there will be a tendency, ceteris paribus, for
A) that country's currency to depreciate.
B) that country's currency to appreciate.
C) the country's interest rates to rise relative to the rest of the world.
D) short term capital to flow out of the country.
E) the country's inflation rate to rise relative to the rest of the world.
Correct Answer:
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