A Country That Imports a Significant Proportion of Its Consumer

question 60

Multiple Choice

A country that imports a significant proportion of its consumer goods can avoid inflation by adopting a fixed exchange rate because it can avoid the price increases of ________ that occur when the value of the domestic currency ________.

• A)imports; rises
• B)imports; falls
• C)exports; rises
• D)exports; falls

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Definitions:

Locus of Causality

Refers to the perceived source of control over events or outcomes, whether internal (within an individual) or external (outside forces or circumstances).

Attribution

The process by which individuals explain the causes of behavior and events.

Capable of Performing

The ability or competency to carry out tasks or fulfill roles effectively.

Dimension of an Attribution

The aspects considered when evaluating the cause of behavior, typically including locus (internal vs. external), stability, and controllability.