Other Things Equal, Under Managed Floating Exchange Rates, If the Rate

question 138

Multiple Choice

Other things equal, under managed floating exchange rates, if the rate of inflation in the United States is less than the rate of inflation of its trading partners, the dollar will likely

• A) appreciate against foreign currencies.
• B) depreciate against foreign currencies.
• C) be officially revalued by the government.
• D) be officially devalued by the government.

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Definitions:

White Rat

Commonly used in psychological experiments, particularly in the study of behavior, learning, and conditioning; often associated with B.F. Skinner's work.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, elicits a conditioned response.

White Rat

Commonly used in psychologic and medical research, a laboratory rat of a breed that is white in color.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and feelings.