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Assume That a Currency's Spot and Future Prices Are the Same

question 158

Multiple Choice

Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The actions of U.S. investors to lock in this higher foreign return would ____ the currency's spot rate and ____ the currency's futures price.

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Definitions:

Black Working Class

Refers to African American workers in various industries who are typically in non-managerial positions and have historically faced economic and social challenges.

Evaluative Conditioning

The process of altering an individual's emotional response to a stimulus by repeatedly pairing it with another stimulus that evokes a desired emotion.

Persuasive Conditioning

The use of classical conditioning techniques to alter attitudes or behaviors by associating a stimulus with positive or negative feelings.

Manipulative Conditioning

Refers to using operant conditioning techniques to manipulate behavior by controlling rewards and punishments.

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