If the Equilibrium Exchange Rate Between U

question 63

Multiple Choice

If the equilibrium exchange rate between U.S.dollars and Japanese yen is $0.008 = 1 yen,but currently the exchange rate is $0.007 = 1 yen,then with flexible exchange rates the dollar price of a yen will __________,and the dollar will __________.

• A) increase; appreciate
• B) decrease; appreciate
• C) increase; depreciate
• D) decrease; depreciate

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Definitions:

Observational Learning

Learning that occurs through observing the behaviors of others and imitating those behaviors without direct instruction or reinforcement.

Operant Conditioning

A process of teaching in which behavior modification occurs as a result of either encouraging rewards or imposing punishments.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger conditioned responses.

Extinction

In psychology, it refers to the gradual weakening and eventual disappearance of a conditioned response.