If Two Countries Have a Fixed Exchange Rate, They Will

question 98

Multiple Choice

If two countries have a fixed exchange rate, they will both have

• A)lower inflation.
• B)interest rates that move in the same direction.
• C)more stable economies.
• D)fixed interest rates at differential levels.
• E)interest rates that move in the opposite direction.

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Definitions:

Expectancy Theory of Motivation

A theory suggesting that individuals are motivated to act in a certain way based on their expectation that their actions will lead to their desired outcome.

Valence

The value a person assigns to work-related outcomes.

Performance-outcome Expectancy

The belief about the likelihood that one's effort will lead to desired performance levels and outcomes.

Negative Inequity

Negative Inequity occurs when an individual perceives that their own input-output ratio is less favorable compared to others, leading to feelings of unfair treatment.