If the rate of growth of labor productivity in the United States rises relative to the rate of growth of labor productivity in other countries, then the dollar's exchange value will depreciate.

Question

Quizplus · Accepted Answer

If the rate of growth of labor productivity in the United States rises relative to other countries, it typically makes U.S. goods and services more competitive internationally, potentially increasing demand for the dollar and causing its value to appreciate, not depreciate.

If the Rate of Growth of Labor Productivity in the United