If the Trade-Weighted Dollar Moves from an Index Value to 100

question 8

True/False

If the trade-weighted dollar moves from an index value to 100 to 110,the dollar depreciates by 10 percent against the trade-weighted averages of the exchange rates of the major trading partners of the United States.

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Definitions:

Diffusion Of Responsibility

The ability of group members to share the burden of the negative consequences of a poor decision.

Risky Shifts

Risky shift phenomenon observes that groups tend to make decisions that are riskier than the individual decisions of group members due to the diffusion of responsibility and group influence.

Unambiguous Decisions

Decisions that are clear and definite, leaving no doubt or room for multiple interpretations.

Reinforcement

A consequence that follows an action and increases the likelihood of that action being repeated in the future.