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An Increase in the Foreign Interest Rate Causes the Demand

question 121

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An increase in the foreign interest rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________,everything else held constant.


Definitions:

Punishment

A consequence that reduces the likelihood of a behavior occurring in the future, often used in behavior modification strategies.

Positive Reinforcement

A behavioral technique involving the addition of a favorable stimulus following a desired behavior to increase the likelihood of it being repeated.

John Lewis

An American civil rights leader and politician known for his work in voter registration drives, the Civil Rights Movement, and as a U.S. Representative.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until its merger with the AFL in 1955, becoming AFL-CIO.

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