The Effect of a Change in the Value of the Dollar

question 72

True/False

The effect of a change in the value of the dollar in the foreign exchange market due to a change in the price level helps explain the slope of aggregate demand, but does not shift it. The effects of a change in the value of the dollar in the foreign exchange market due to speculation is shown by shifting the aggregate demand curve.

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Definitions:

Unconditioned Stimulus

is a stimulus that innately and involuntarily prompts a reaction without the necessity for previous learning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Conditioned Stimulus

A once-neutral cue that, after being paired with an unconditioned stimulus, eventually induces a conditioned response.