A Major Cause of Volatility in the Value of the U.S.dollar

question 10

Multiple Choice

A major cause of volatility in the value of the U.S.dollar is ________.

• A)foreign exchange interventions by the U.S.Treasury
• B)change in U.S.net exports
• C)change in the expected value of the dollar
• D)disagreement among policy makers

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Definitions:

Confirmation Bias

The habit of scouting for, construing, preferring, and recalling insights in a manner that upholds one's antecedent beliefs or guesses.

Stereotype

Overgeneralized and oversimplified beliefs about a group of people based on their membership in that group.

Confirmation Bias

The propensity to explore, interpret, select, and revive information in ways that strengthen one's existing convictions or hypotheses.

Fundamental Attribution Error

The tendency to overestimate the influence of personal characteristics and underestimate the influence of situational factors in explaining others' behavior.