Use the Following to Answer Questions

question 330

Multiple Choice

Use the following to answer questions:
-(Figure: Exchange Market Intervention) Refer to panel (b) in Figure: Exchange Market Intervention.Which approach could the Genovian government use to decrease the value of the geno below its present equilibrium exchange rate and into the target range?

• A) use its own currency to buy Canadian dollars
• B) shift the demand for genos to the right by increasing interest rates in Genovia
• C) eliminate exchange controls that limit the right of Genovian citizens to sell foreign currency
• D) tighten the exchange controls that limit purchases of Canadian dollars by Genovian citizens

---

Definitions:

Negative Thinking

A cognitive pattern where an individual consistently anticipates undesirable outcomes or views situations pessimistically.

Free Association

A psychoanalytic technique where the patient verbalizes thoughts as they occur without censorship or filtering, to uncover unconscious processes.

Unconscious

Refers to the part of the human mind that is beyond awareness, holding thoughts, memories, and desires that are not accessible through conscious thought.

Resistance

The refusal to accept or comply with something; in a psychological context, it could refer to the opposition to change or the treatment process.