The Following Example Supports Which Extension to the Monetary Approach

question 15

Multiple Choice

The following example supports which extension to the Monetary Approach to Exchange rates: Due to a sudden increase in American productivity,the U.S.dollar depreciated.

• A) General equilibrium approach
• B) Trade balance approach
• C) Overshooting approach
• D) Currency substitution approach

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Definitions:

Autonomy

An individual's capacity for self-governance or self-directing freedom and especially moral independence, critical for personal development.

Competence

An individual's capability to effectively perform or execute a particular task.

Relatedness

The need to interact, be connected to, and experience caring for others, considered a fundamental psychological need.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.