Suppose That the Latest Consumer Price Index (CPI)release Shows a Higher

question 14

Multiple Choice

Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant,the release of the CPI report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar would ________.

• A)increase;appreciate
• B)increase;depreciate
• C)decrease;appreciate
• D)decrease;depreciate

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Definitions:

Rate of Response

A measurement in behavioral psychology that indicates how often a behavior is performed within a set period of time.

Contingencies

In the context of behavior, it refers to the dependence of certain outcomes on specific conditions or actions.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of its repetition.

Punishment

A method used to reduce or eliminate undesired behaviors by applying an unpleasant stimulus or removing a pleasant one in response to the behavior.