A System of Fixed Exchange Rates and High Capital Mobility

question 13

Multiple Choice

A system of fixed exchange rates and high capital mobility strengthens which policy in combating a recession?

• A) expansionary fiscal policy
• B) expansionary monetary policy
• C) contractionary fiscal policy
• D) contractionary monetary policy

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Definitions:

Aversion Therapy

A behavioral treatment method that uses negative stimuli to reduce the appeal of undesirable habits or behaviors.

Operant Conditioning

The learning of voluntary behavior through the effects of pleasant and unpleasant consequences to responses.

Unpleasant Stimulus

Any object, event, or situation that is undesirable or discomforting to an individual, often leading to avoidance behavior.

Modeling

The process of learning behavior by observing and imitating others, as proposed in Bandura's social learning theory.