In the Short Run a Currency Depreciation Can Make a Trade

question 55

Multiple Choice

In the short run a currency depreciation can make a trade balance worse if

• A)there is no domestic producer of an import.
• B)there is no domestic buyer for an import.
• C)there is no export market for a country's output.

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring in group settings that foster anonymity.

Social Facilitation

When the mere presence of others improves performance.

Group Polarization

The phenomenon by which a group's prevailing attitudes or beliefs become more extreme following group discussions, as members tend to support more extreme positions.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.