​Under a Managed Float Exchange Rate System, the Fed May

question 55

Multiple Choice

​Under a managed float exchange rate system, the Fed may attempt to stimulate the U.S. economy by ____ the dollar. Such an adjustment in the dollar's value should ____ the U.S. demand for products produced by major foreign countries.

• A) ​weakening; increase
• B) ​weakening; decrease
• C) ​strengthening; increase
• D) ​strengthening; decrease

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Definitions:

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Construct Validity

The extent to which a test measures the theoretical construct or concept it is intended to measure.

Content Validity

A type of validity that examines how well a test samples a universe of items.

Reliability

The extent to which a measurement instrument yields reliable and uniform outcomes across various occasions.