Suppose There Are Two Countries (Country a and Country B)each

question 34

Multiple Choice

Suppose there are two countries (country A and country B) each with its own currency (Currency A and Currency B) . Suppose the exchange rate is expressed in terms of amount of Currency A needed to get Currency B. A strengthening of Currency A would show up as

• A)an increase in the exchange rate.
• B)a decrease in the exchange rate.
• C)an increase in the interest rate
• D)a decrease in the interest rate

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Definitions:

Equity Theories

A set of theories in psychology and organizational behavior that focus on the principles of fairness and justice in social relationships, particularly in the workplace.

Social Exchange

A theory in social science that proposes human interactions are based on the exchange of goods, services, information, or emotional support, where the goal is to maximize benefits and minimize costs.

Motivation

The driving force that initiates and directs behavior toward achieving a goal.

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and can be creative within work conditions.