In the Long Run,both Exports and Imports Tend to Be

question 30

Multiple Choice

In the long run,both exports and imports tend to be

• A)unresponsive to changes in exchange rates.
• B)responsive to changes in exchange rates.
• C)both responsive and unresponsive to changes in exchange rates.
• D)none of the options

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Definitions:

Hunches

Intuitive feelings or guesses without conscious reasoning, often based on experience.

Bounded Rationality

The concept that individuals make decisions based on the limited information available to them and their cognitive limitations.

Classical Decision Theory

A framework for understanding and improving decision-making processes, emphasizing rational choices based on available information and preferences.

Perceive

To perceive means to become aware or conscious of something through the senses, or to interpret in a certain way.