A Fundamental Problem in International Economics Is How to Produce

question 29

Multiple Choice

A fundamental problem in international economics is how to produce

• A) a perfect degree of monetary harmony.
• B) an acceptable degree of harmony among the international trade policies of different countries.
• C) a world government that can harmonize trade and monetary policies
• D) a counter-cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country.
• E) a worldwide form of currency.

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Definitions:

Assimilation

The cognitive process in which new information is absorbed and integrated into existing knowledge frameworks or schemas.

Accommodation

in cognitive psychology, refers to the process of adjusting one's schema (mental models) to incorporate new information, as part of the learning process.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infancy.

Transformation

A comprehensive change or conversion in form, appearance, nature, or character.