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If the Average Productivity of Indian Firms Is Rising More

Question 121

Multiple Choice

If the average productivity of Indian firms is rising more quickly than the average productivity of American firms,which of the following would you expect to see? (India's currency is the rupee.)


A) a decrease in the value of the rupee relative to the dollar
B) an increase in the prices of Indian products
C) an increase in the quantity demanded of Indian products relative to American products
D) All of the above are correct.

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