In 1995 House Speaker Newt Gingrich Threatened to Send the United

question 66

Multiple Choice

In 1995 House Speaker Newt Gingrich threatened to send the United States into default on its debt.During the day of this announcement,U.S.interest rates rose and the real exchange rate of the U.S.dollar depreciated.Which of these changes is consistent with the results of the open-economy macroeconomic model?

• A)the increase in U.S.interest rates
• B)the depreciation of the real exchange rate of the U.S.dollar
• C)Both a and b are consistent.
• D)Neither a nor b are consistent.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Bodily Arousal

A state of physiological activation or readiness, often associated with emotions, stress, or excitement, involving changes in heart rate, blood pressure, and respiration.

Autonomic Nervous System

The component of the nervous system that regulates involuntary bodily functions, including respiration, cardiac rhythm, and digestion activities.

Somatic Nervous System

The part of the peripheral nervous system that controls voluntary movements of the body and transmits sensory information to the central nervous system.