A Central Bank's Attempt to Prevent an Appreciation of Its

question 115

Multiple Choice

A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base.

• A)purchase;higher;increases
• B)purchase;lower;decreases
• C)sale;lower;decreases
• D)sale;higher;increases

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Definitions:

Social-Cognitive Perspective

A psychological framework focusing on how individual behavior is influenced by interactions with other people and by personal cognition.

Unrealistic Optimism

The belief that one is less likely than others to experience negative events and more likely to experience positive events.

Contraceptives

Methods or devices used to prevent pregnancy as a result of sexual intercourse.

Social-Cognitive Perspective

The social-cognitive perspective is an approach in psychology that emphasizes the role of cognitive processes in understanding social behavior, including how we interpret, analyze, and remember information about others and ourselves.