An increase in expected productivity in a country should cause the supply of that country's currency to shift to the right.

Question

Quizplus · Accepted Answer

An increase in expected productivity in a country typically leads to an increase in demand for that country's currency, as investors and businesses anticipate higher returns on investment. This would shift the demand curve for the currency to the right, not the supply curve.

An Increase in Expected Productivity in a Country Should Cause