As a Result of Undervaluation

question 114

Multiple Choice

As a result of undervaluation,

• A)domestic consumers can buy more foreign goods.
• B)exporters can sell more goods to foreign buyers.
• C)domestic currency is artificially more valuable.
• D)the government faces a flexible exchange rate.
• E)consumers pay more for domestic goods.

---

Definitions:

Spread Of Effect

The diffusion of emotional responses or behaviors from one context to another; in learning, it refers to the generalization of behaviors to similar stimuli.

Generalization

The ability to apply learned skills or responses to new situations or stimuli that are similar to the original conditions.

Associative Linkage

The connection or relation between two concepts or mental processes, allowing for one to trigger the recall of the other.

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the reinforcement is no longer presented.