Which of the Following Is Part of the Explanation of Why

question 52

Multiple Choice

Which of the following is part of the explanation of why net exports are correlated with interest rates?

• A) An increase in domestic interest rates discourages foreign lending.
• B) A reduction in foreign lending drives up the value of the domestic currency.
• C) An increase in the value of the domestic currency increases the demand for foreign goods.
• D) An increase in the demand for foreign goods causes an immediate increase in net exports.
• E) None of the above is both an accurate statement and part of an explanation of the correlation between net exports and interest rates.

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Definitions:

Temperaments

Inherent traits of a person's character and personality that influence how they interact with the environment and regulate their emotions.

Effortful Control

The capacity to regulate one's behavior, emotions, and thoughts in the pursuit of long-term goals, often in the face of external demands or distractions.

Extraversion/Surgency

A personality trait marked by outward energy, sociability, talkativeness, assertiveness, and a high level of engagement with the external world.

Negative Affectivity

A personality trait characterized by a tendency to experience negative emotions such as sadness, anxiety, and anger more frequently and intensely than others.