If the Exchange Rate Is Too High in the Foreign

question 37

Multiple Choice

If the exchange rate is too high in the foreign exchange market,

• A)there is a surplus and the exchange rate will rise.
• B)there is a surplus and the exchange rate will fall.
• C)exports are cheap, and the demand curve for Canadian dollars will shift rightward.
• D)there is a shortage and the exchange rate will fall.
• E)there is a shortage and the exchange rate will rise.

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Definitions:

CS

An abbreviation for Conditioned Stimulus, which is a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

UCR

An unconditioned response, which is an automatic or natural reaction to an unconditioned stimulus without prior conditioning.

Delayed Conditioning

A conditioning process where there is a time gap between the presentation of the conditioned stimulus (CS) and the unconditioned stimulus (US) that leads to learning.

Trace Conditioning

A form of classical conditioning where there is a time interval between the conditioned stimulus and the unconditioned stimulus, requiring the subject to maintain a memory of the CS to form the association.