If the Dollar Appreciates, Foreigners Will Tend to Respond by

question 104

Multiple Choice

If the dollar appreciates, foreigners will tend to respond by

• A)decreasing the quantity demanded of American-made goods.
• B)increasing the quantity demanded of American-made goods.
• C)decreasing the demand of American-made goods.
• D)increasing the demand of American-made goods.

---

Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving.

Availability Heuristic

A cognitive shortcut based on the first instances that pop into someone's mind upon assessing a particular subject, idea, technique, or choice.

Functional Fixedness

A psychological inclination that constrains someone to applying an artifact only in its accepted traditional role, thereby stifling creative thought and problem resolution.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.