An increase in productivity in a country will cause its currency to ________ because it can produce goods at a ________ price,everything else held constant.

Question

Quizplus · Accepted Answer

An increase in productivity allows a country to produce goods at a lower cost, making its products more competitive internationally. This typically leads to an increase in exports, which can cause the country's currency to appreciate due to higher demand for its currency to purchase its goods.

An Increase in Productivity in a Country Will Cause Its