Holding All Else Constant, an Increase in the Preferences of Americans

question 15

Multiple Choice

Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.

• A)increase; increase
• B)increase; decrease
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Social Facilitation

The tendency for people to perform differently, usually better, on tasks when they are in the presence of others compared to when they are alone.

Goof-off Phenomenon

The tendency to reduce effort and productivity in group settings due to the perceived diffusion of personal responsibility.

Social Facilitation

The tendency for people to perform differently when in the presence of others compared to when alone, typically showing an improvement in performance on simple or well-rehearsed tasks.

Sadistic

Characterized by deriving pleasure through inflicting pain, suffering, or humiliation on others.