In a System of Flexible Exchange Rates,lower Inflation Abroad Would

question 34

Multiple Choice

In a system of flexible exchange rates,lower inflation abroad would induce

• A)a rise in the U.S.exchange rate.
• B)a fall in the U.S.rate of exchange.
• C)a balance of payments deficit for the United States.
• D)no change in U.S.exchange rates.

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Definitions:

Little Albert

An early experiment in psychology by John B. Watson and Rosalie Rayner that demonstrated how emotional responses, such as fear, could be conditioned in humans.

John Watson

An American psychologist who established the school of behaviorism and conducted research on animal behavior and child development.

Immunosuppression

The reduction of the efficacy of the immune system's ability to fight infections or diseases.

Classical Conditioning

A training process in which two stimuli are systematically paired together, causing a response initially elicited by the second stimulus to be later elicited by the first stimulus alone.