All of the Following Are Symptoms of Definite and Indefinite

question 14

Multiple Choice

All of the following are symptoms of definite and indefinite macroeconomic imbalances except

• A)large budget deficits.
• B)an overvalued currency.
• C)a current account deficit.
• D)the discovery of emerging markets by financial investors who want to diversify their portfolios.
• E)inflationary pressures.

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Definitions:

Risk-as-feelings Hypothesis

The theory suggesting that people’s emotional responses to risky situations play a significant role in their decision-making processes, often overriding rational analysis.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Yerkes-Dodson Law

The Yerkes-Dodson Law is a psychological principle stating that there is an optimal level of arousal for optimal performance; too little or too much arousal can lead to decreased performance.

Aroused People

Individuals experiencing heightened physiological and psychological activity, which can influence cognition and behavior.