How Might a Budget Deficit Affect the Balance of Trade

question 148

Multiple Choice

How might a budget deficit affect the balance of trade?

• A)A budget deficit raises interest rates, which raises exchange rates and increases the balance of trade.
• B)A budget deficit raises interest rates, which raises exchange rates and reduces the balance of trade.
• C)A budget deficit reduces interest rates, which raises exchange rates and reduces the balance of trade.
• D)A budget deficit reduces interest rates, which reduces exchange rates and reduces the balance of trade.
• E)A budget deficit raises interest rates, which reduces exchange rates, and reduces the balance of trade.

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Definitions:

Discrimination Training

Involves teaching an individual to differentiate between stimuli and respond appropriately, emphasizing the development of discriminatory skills.

Generalization Gradient

A visual representation of the response strength produced by stimuli of varying degrees of similarity to the training stimulus.

Discrimination Graph

A graphical representation used to illustrate the process and outcome of discrimination learning, showing how different stimuli are associated with specific responses.

Inhibitory Generalization Gradient

A graph showing the level of generalization from an inhibitory conditioned stimulus (CS1) to other stimuli.