If a Government Runs a Fixed Exchange Rate System and Increases

question 142

Multiple Choice

If a government runs a fixed exchange rate system and increases the dollar price of its currency,we say there has been a(n)

• A) appreciation of the foreign currency
• B) depreciation of the foreign currency
• C) revaluation of the foreign currency
• D) devaluation of the foreign currency
• E) fixing of the foreign currency

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Definitions:

Flooding

A psychological treatment method in which a person is exposed to their fear at its maximum intensity, and for a prolonged period, without any actual harm, to help overcome the fear.

Balloons

Flexible bags filled with air or other gases like helium, often used for decoration, entertainment, or scientific experiments.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable outcome or stimulus increases the likelihood of a behavior being repeated.

Extinction

Within the field of psychology, it refers to the process where a conditioned response slowly diminishes and ultimately vanishes when the conditioned stimulus isn't presented together with the unconditioned stimulus anymore.