In the New Keynesian Open Economy Model

question 33

Multiple Choice

In the New Keynesian open economy model

• A) the nominal exchange rate is always fixed.
• B) prices are flexible.
• C) net exports depends on the relative price of foreign goods to domestic goods.
• D) the nominal exchange rate is always flexible.

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Definitions:

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response or no exposure to the conditioned stimulus.

Fixed-ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, often used in behavior therapy and training.

Variable-interval

A variable-interval schedule in psychology refers to a reinforcement strategy where a response is rewarded after an unpredictable amount of time has passed.

Secondary Reinforcer

A learned stimulus that acquires its reinforcing qualities through association with primary reinforcers.