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The Logic of the Exchange-Rate Effect Begins with a Change

question 66

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The logic of the exchange-rate effect begins with a change in the price level changing the interest rate.


Definitions:

Unconditioned Stimulus

In behavioral psychology, a stimulus that naturally and automatically triggers a response without any previous conditioning.

Negative Reinforcement

is a concept in behavioral psychology where the removal of a negative condition strengthens a behavior.

Operant

Pertaining to operant conditioning, a method of learning that employs rewards and punishments for behavior, leading to changes in that behavior's frequency.

Systematic Desensitization

A therapeutic intervention aimed at reducing an individual's anxiety responses through gradual exposure to the feared object or situation, along with relaxation techniques.

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