If There Is a Decline in Home Bias, U

question 188

Multiple Choice

If there is a decline in home bias, U.S. residents are more likely to invest their savings in

• A) the domestic economy and this will lead to a decrease in the capital account surplus.
• B) foreign economies and this will lead to an increase in the capital account surplus.
• C) the domestic economy and this will lead to an increase in the capital account surplus.
• D) foreign economies and this will lead to a decrease in the capital account surplus.

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Definitions:

Skinner's Theory

A psychological theory developed by B.F. Skinner that emphasizes the importance of reinforcement and punishment in shaping behavior through operant conditioning.

Radical Behaviorism

A branch of behaviorism that views all behavior as a consequence of environmental interactions and rejects the notion of inner states like thoughts and feelings as causes of behavior.

Radical Behaviorism

A philosophical stance regarding the science of behavior developed by B.F. Skinner, which argues for the study of observable behavior and its controlling variables in the environment, as a means of understanding human and animal behavior.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.