The Term "Proximity," as It Is Used in the Issue-Contingent

question 15

Multiple Choice

The term "proximity," as it is used in the issue-contingent model,describes:

• A) The immediacy with which harm is expected to occur
• B) The geographic distance between the location where harm occurs and the location of the decision-maker
• C) The degree of likelihood that harm actually will arise
• D) A person's affinity for the person or group harmed

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Definitions:

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency without adjustment for inflation rates.

Real Exchange Rate

The rate at which two currencies can be exchanged, adjusted for inflation, indicating how much of a country's goods and services can be exchanged for those of another country.

Prices Rise

An increase in the cost of goods and services in an economy over a period of time.

Purchasing-Power Parity

A theory that states prices of goods and services should equalize across countries when expressed in a common currency, accounting for exchange rates.