If a Budget Surplus Leads to a Decrease in U

question 118

Multiple Choice

If a budget surplus leads to a decrease in U.S. real interest rates, the lower rates will tend to cause

• A) the dollar to appreciate.
• B) the dollar to depreciate.
• C) a decrease in private investment.
• D) a decrease in net exports.

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Definitions:

Classical Conditioning

A conditioning approach where pairing two stimuli repeatedly results in a response that, though initially evoked by the second stimulus, is later elicited solely by the first stimulus.

Reinforcement

A concept in psychology referring to any process that increases the likelihood of a behavior being repeated, using rewards or punishments following that behavior.

Social Learning

The process of acquiring skills, knowledge, and behaviors by observing and imitating others.

Bribery

The offering, giving, receiving, or soliciting of any item of value as a means of influencing the actions of an individual holding a public or legal duty.