There Is a Flexible Exchange Rate System and Only Two

question 42

Multiple Choice

There is a flexible exchange rate system and only two countries in the world,the United States and Mexico.The real interest rate in the United States rises relative to the real interest rate in Mexico.It follows that

• A) the dollar will depreciate and the peso will appreciate.
• B) the peso will depreciate and the dollar will appreciate.
• C) both the peso and the dollar are likely to appreciate.
• D) both the peso and the dollar are likely to depreciate.

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Definitions:

Whole-Object Assumption

The assumption that words refer to whole objects and not to their component parts or characteristics.

Respiratory Distress Syndrome

A cluster of breathing problems, including weak and irregular breathing, to which preterm babies are particularly prone.

Mutual Exclusivity Assumption

A concept in language acquisition where young children assume that objects only have one label.

Infant-Directed Speech

A special, modified way of speaking adults use when talking to babies, characterized by higher pitch, slower rate, and exaggerated intonation, thought to aid language learning.