Under the Current Managed Float Exchange Rate Regime,countries with Balance

question 36

Multiple Choice

Under the current managed float exchange rate regime,countries with balance of payments deficits frequently do not want to see their currencies depreciate because it makes ________ goods more expensive for ________ consumers and can stimulate inflation.

• A)foreign;foreign
• B)foreign;domestic
• C)domestic;foreign
• D)domestic;domestic

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Definitions:

Psychological Reactance Theory

A theory that suggests individuals have an innate response to resist threats to their freedom of choice or behavior, leading to a motivational state aimed at reasserting control.

Strong Attitudes

Deeply held beliefs that are resistant to change and have a significant influence on behavior.

Vested Interest

Having a personal stake or concern in an outcome that typically leads to biased decision-making.

Attitude Domain

The range of beliefs, feelings, and behavioral intentions toward a particular object, person, or subject.