In the Classical Model with an Open Economy,an Increase in Government

question 38

True/False

In the classical model with an open economy,an increase in government purchases can affect a country's exchange rate,causing its imports and exports to change.

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Definitions:

Classical Conditioning

A habituation method wherein two stimuli are systematically paired together; as a result, a response initially stimulated by the second stimulus is later elicited by the first stimulus on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with a significant stimulus.

Conditioned Stimulus

An originally neutral signal that, upon being paired with an unconditioned stimulus, ultimately elicits a conditioned response.

Anxiety

A sensation of anxiety or discomfort caused by the unpredictability of a situation.