If the Fed Sells U

question 72

Multiple Choice

If the Fed sells U.S. dollars, the exchange rate

• A) does not change.
• B) rises.
• C) falls.
• D) changes, but the direction depends on whether the Fed affected the demand for dollars or the supply of dollars.

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Definitions:

Irrational Emotions

Feelings that do not have a logical or reasonable basis, often disproportionate to the situation at hand.

Cognitive-Behavioural Therapy

A therapy approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Behavioural Experiments

A technique in cognitive-behavioral therapy where patients test the reality of their beliefs through homework assignments.