An increase in which of the following factors (from the perspective of the domestic country) would cause an appreciation of the domestic currency in the long run?
A) expected future exchange rate
B) relative import demand
C) relative productivity
D) all of the above

Question

Quizplus · Accepted Answer

Relative productivity is the only factor that would cause an appreciation of the domestic currency in the long run.

An Increase in Which of the Following Factors (From the Perspective