If the rate of growth in labor productivity in the United States increases relative to the rate of growth in labor productivity in other countries
A) the dollar's exchange value depreciates against other currencies
B) the dollar's exchange value remains constant against other currencies
C) Americans are willing to pay more U.S.dollars per unit of foreign currency
D) Americans are willing to pay fewer U.S.dollars per unit of foreign currency

Question

Quizplus · Accepted Answer

An increase in U.S. labor productivity makes U.S. goods more competitive, increasing demand for dollars and leading to fewer dollars needed per unit of foreign currency.

If the Rate of Growth in Labor Productivity in the United