A Strong Dollar Is Normally Expected to Cause

question 71

Multiple Choice

A strong dollar is normally expected to cause:

• A)high unemployment and high inflation in the U.S.
• B)high unemployment and low inflation in the U.S.
• C)low unemployment and low inflation in the U.S.
• D)low unemployment and high inflation in the U.S.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Behavior

The actions or reactions of an individual in response to external or internal stimuli.

Postdecisional Dissonance

Postdecisional dissonance is the psychological discomfort experienced after making a difficult choice, often leading individuals to justify their decision or devalue the rejected alternatives to reduce the dissonance.

Selective Exposure

The tendency of individuals to favor information that reinforces their pre-existing views while avoiding contradictory information.