When a Currency Is Devalued, the Immediate Impact May Be

question 4

True/False

When a currency is devalued, the immediate impact may be an increase in a country's trade deficit. However, this situation tends to correct itself in 2 to 5 weeks.

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Definitions:

Stimulus Generalization

The process by which a response conditioned to one stimulus is evoked by similar, but not identical, stimuli.

Higher-Order Conditioning

Higher-order conditioning is a form of learning in which a stimulus is paired with a previously conditioned stimulus, leading to an association and conditioned response to the new stimulus, even though it was never directly associated with the unconditioned stimulus.

Sensory Preconditioning

A learning process where a neutral stimulus becomes capable of eliciting a response after being paired with another stimulus that naturally evokes a reaction.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.