The Key Link Between the Twin Deficits Involves

question 131

Multiple Choice

The key link between the twin deficits involves:

• A)higher interest rates and a stronger dollar.
• B)lower interest rates and a stronger dollar.
• C)higher interest rates and a weaker dollar.
• D)lower interest rates and larger trade deficits
• E)higher interest rates leading to more exports.

---

Definitions:

Confounding Variables

Factors other than the independent variable(s) that are unequal across groups.

Random Assignment

A method used in experiments to ensure that every participant has an equal chance of being assigned to any given group, thereby reducing bias.

Experimenter Bias

A phenomenon that occurs when a researcher’s preconceived notions or expectations in some way influence participants’ behavior and/or the researcher’s interpretation of experimental results.

Placebo Effect

A psychological phenomenon where a person experiences a perceived improvement in condition after receiving a treatment that has no therapeutic effect.