Generating Exchange Rate Forecasts with the Fundamental Approach Involves

question 86

Multiple Choice

Generating exchange rate forecasts with the fundamental approach involves

• A)looking at charts of the exchange rate and extrapolating the patterns into the future
• B)estimation of a structural model
• C)substituting the estimated values of the independent variables into the estimated structural model to generate the forecast
• D)both b and c

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Definitions:

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating others, also known as modeling.

Operant Conditioning

A learning process in which behavior is strengthened or weakened by the consequences, such as rewards or punishments.

Behaviorism

The view that psychology should be an objective science that studies behavior without reference to mental processes. Most psychologists today agree with the first part but not with the second part.

Spontaneous Recovery

The reappearance, after a pause, of an extinguished conditioned response.