Use the Following to Answer Questions

question 28

Multiple Choice

Use the following to answer questions:
Suppose that initially the nominal exchange rate was 40 rupees per dollar,but it is now 50 rupees per dollar.
-(Scenario: Exchange Rate between Canada and India) Refer to Scenario: Exchange Rate between Canada and India.The real exchange rate will change by the greatest amount when the Canadian inflation rate is _____ and the Indian inflation rate is _____.

• A) 0;0
• B) 5%;2%
• C) 2%;12%
• D) 5%;5%

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Definitions:

Excitatory Strength

The level of potential or ability of a stimulus to produce a response or a desired behavioral effect.

Drive State

A psychological state that motivates an organism to satisfy a physiological need, such as hunger or thirst.

Habit Strength

The strength of the connection between a particular environmental stimulus and a specific response.

Hull

Refers to Clark L. Hull, a psychologist known for his work in drive theory and behaviorism, emphasizing the importance of rigorous scientific methods in psychological research.