Which of the Following Is a Position Taken by Advocates

question 78

Multiple Choice

Which of the following is a position taken by advocates of a fixed exchange rate system?

• A)Removal of the obligation to maintain exchange rate parity would restore monetary control to a government.
• B)Destabilizing speculation tends to accentuate the fluctuations around the exchange rate's long-run value.
• C)Speculation has negligible impact on foreign exchange rates.
• D)The forward exchange market insures against the risks associated with exchange rate fluctuations.

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Definitions:

Contiguity

A principle in psychology and learning theory that suggests that events experienced close together in time or space are likely to be associated with each other.

Contrapreparedness

An inability to associate a specific conditioned stimulus (CS) and a specific unconditioned stimulus (UCS) despite repeated conditioning experiences

Predictable Stimulus

A stimulus that occurs in a manner or pattern that can be anticipated, allowing organisms to anticipate and react accordingly.

Stimulus Substitution

A theory in classical conditioning suggesting that the conditioned stimulus acts as a substitute for the unconditioned stimulus, eliciting the same response.