The Condition Which States That the Domestic Interest Rate Equals

question 69

Multiple Choice

The condition which states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called

• A) the purchasing power parity condition.
• B) the interest parity condition.
• C) money neutrality.
• D) the theory of foreign capital mobility.

---

Definitions:

Indiscriminable Contingencies

These are situations where individuals cannot predict when their behavior will be reinforced, often leading to more consistent behavior.

Peer Group

A social group of individuals, often of a similar age, background, or social status, that influences an individual's attitudes and behavior.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus that was originally associated with the response.

Response Generalization

A type of generalization that occurs when behaviors change that were not specifically targeted in the original intervention program. These behaviors are usually members of the same response class as the one targeted for intervention but have not received the intervention.