All Else Equal, Net Exports of a Country Will Increase

question 77

Multiple Choice

All else equal, net exports of a country will increase the most if

• A)its inflation rate decreases and its exchange rate depreciates.
• B)its inflation rate increases and its exchange rate appreciates.
• C)its inflation rate decreases and its exchange rate appreciates.
• D)its inflation rate increases and its exchange rate depreciates.
• E)both its inflation rate and exchange rate remain the same.

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Definitions:

Openness To Experience

A personality trait characterized by a willingness to try new things, engage in imaginative activities, and embrace novel ideas.

Karen Horney

A psychoanalytic psychologist known for her theory of neurotic needs and her work on feminine psychology.

Sense Of Security

A feeling of safety and freedom from worry or danger.

Affiliation

The need to form relationships and be part of a group; a psychological drive towards social connections and associations.