In 1995 House Speaker Newt Gingrich Threatened to Send the United

question 66

Multiple Choice

In 1995 House Speaker Newt Gingrich threatened to send the United States into default on its debt.During the day of this announcement,U.S.interest rates rose and the real exchange rate of the U.S.dollar depreciated.Which of these changes is consistent with the results of the open-economy macroeconomic model?

• A)the increase in U.S.interest rates
• B)the depreciation of the real exchange rate of the U.S.dollar
• C)Both a and b are consistent.
• D)Neither a nor b are consistent.

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Definitions:

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, or other forms of social interactions.

Altruistic Acts

Behaviors driven by a selfless concern for the well-being of others, without expectation of reward or benefit.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values simultaneously.

Compliance

The act of conforming to a rule, standard, or law.