A Regression Analysis of the Australian Dollar Value on the Inflation

question 48

True/False

A regression analysis of the Australian dollar value on the inflation differential between the United States and Australia produced a coefficient of .8. Thus, for every 1 percent increase in the inflation differential, the Australian dollar is expected to depreciate by .8 percent.

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Definitions:

Rational Emotive Therapy

A form of psychotherapy that helps individuals identify self-defeating thoughts and feelings, challenge the rationality of those feelings, and replace them with healthier, more productive beliefs.

Cognitive

Pertaining to mental processes such as perception, memory, thinking, and problem solving.

Rational-Emotive

Rational-Emotive Behavior Therapy (REBT) is a form of psychotherapy which focuses on resolving emotional and behavioral problems and disturbances by confronting irrational beliefs and changing them.

Albert Ellis

A psychologist and psychotherapist who founded Rational Emotive Behavior Therapy, a form of cognitive-behavioral therapy.