The Dollar Will Appreciate Relative to the Yen If, Ceteris

question 77

Multiple Choice

The dollar will appreciate relative to the yen if, ceteris paribus:

• A)Australian interest rates decrease relative to interest rates in other countries.
• B)income in Japan falls.
• C)speculators think the value of the dollar relative to the yen will rise.
• D)there is a recession in Japan.

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Definitions:

Uncontrollably

Acting or occurring without being able to be controlled or restrained, often used to describe emotions or physical responses.

Drive-Reduction Theory

A theory of motivation proposing that the primary motivation of all organisms is to reduce their drives, such as hunger, thirst, or the need for warmth.

Stimulus Motive Theory

The concept that behavior is motivated by a desire to increase stimulation in order to maintain an optimal level of arousal.

Evolutionary Theory

A scientific theory that explains how species change over time through mechanisms like natural selection and genetic variation.