In the Spring of 2005, People in Business and Government

question 69

Multiple Choice

In the spring of 2005, people in business and government were calling for China to move away from its fixed-exchange rate regime because:

• A)Its pegged value was far below purchasing power parity estimates
• B)Its pegged value was far above purchasing power parity estimates
• C)It was adding to China's current account deficit
• D)It was exporting its inflation to the United States

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning.

Backward Conditioning

A less common form of classical conditioning where the unconditioned stimulus is presented before the conditioned stimulus.

Learned Response

A behavior that has been acquired or modified as a result of experience or conditioning.