The US Trade Balance with Japan Is Expected to Go from from a Deficit

question 14

Multiple Choice

the U.S. trade balance with Japan is expected to go from a deficit this year to a surplus next year, the forward rate on yen would

• A) be less than the spot rate
• B) be higher than the spot rate
• C) equal the spot rate
• D) could be either above or below the spot rate

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Definitions:

Dissenters

Individuals who express opinions that are at variance with those previously, commonly, or officially expressed.

Conformity

The tendency of individuals to adjust their behaviors, attitudes, and beliefs to match those of the group or social norms.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Referent Informational Influence

A form of social influence where individuals conform to the behavior of a group they admire or relate to, in order to be accepted or to identify with the group.