A Government May Be Able to Reduce the International Value

question 121

Multiple Choice

A government may be able to reduce the international value of its currency by

• A) selling its currency in the foreign exchange market.
• B) buying its currency in the foreign exchange market.
• C) selling foreign currencies in the foreign exchange market.
• D) increasing its domestic interest rates.

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Definitions:

Internal Validity

The extent to which the design and conduct of a study allow for accurate attribution of outcomes to the intervention or treatment, rather than to confounding variables.

Nonequivalent Control Group Design

A quasi-experimental research design where the experimental group and control group may not be strictly comparable at the outset of the experiment, lacking random assignment.

Selection Differences

Differences in the type of subjects who make up each group in an experimental design; this situation occurs whenparticipants elect which groupthey are to be assigned to.

Independent Variable

In experimental research, the factor that is altered by the scientist to observe how it affects a dependent variable.