If η_M = -

question 36

Multiple Choice

If η_M = -.85 and η_X = -.62 ,then

• A)Foreign exchange market is unstable
• B)Marshall-Learner condition is not met
• C)Foreign exchange market is stable
• D)If the exchange rate deviates from the equilibrium value,market forces will not be able to bring it back to the equilibrium on its own

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Definitions:

Assimilation

The cognitive process where individuals integrate new information into existing knowledge frameworks or the social process of adjusting to another culture by adopting its practices and norms.

Built-In Mechanism

An innate or inherent feature or function within a biological or mechanical system enabling it to operate effectively.

Light and Darkness

Fundamental aspects of the natural world, describing the presence or absence of visible electromagnetic radiation.

Temperature Fluctuations

Variations in the temperature of an environment or body over time.