If Foreigners Suddenly Reduced Their Investments in the United States

question 42

Multiple Choice

If foreigners suddenly reduced their investments in the United States, what would happen?

• A) The value of the dollar on foreign exchange markets would increase.
• B) The action would have no impact on the U.S. economy.
• C) The foreigners would sell U.S. dollars for another currency.
• D) The price of U.S. exports would increase.

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Definitions:

Decay Theory

A theory suggesting that memory fades and becomes less accurate over time due to the mere passage of time, leading information to "decay."

Sensory Memory

The shortest-term element of memory, which allows the retention of impressions of sensory information after the original stimuli have ended.

Short-term Memory

The power to hold a minimal amount of details in a readily accessible state for a limited period.

Long-term Memory

The aspect of memory in which information is stored for extended periods, ranging from several minutes to a lifetime.