Which of the Following Is an Argument of Opponents of Devaluations

question 2

Multiple Choice

Which of the following is an argument of opponents of devaluations?

• A)devaluations cause relatively slow adjustments.
• B)participants in foreign exchange markets have a short memory: if the expected devaluation doesn't occur within a short time-period,they will stop expecting it.
• C)a devaluation causes a nation with fixed exchange rates to lose credibility in the medium run,driving its interest rate higher.
• D)all of the above
• E)none of the above

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Definitions:

Temperament

Biologically based tendency to feel or act in certain ways.

Characteristic Adaptation

Describes personality traits, motivations, and behaviors that are shaped by an individual's life experiences.

Personality Stability

Refers to the consistency of individual differences in thoughts, feelings, and behavior over time and across situations.

Age

A measure of the time someone or something has existed, often used as a determinant of the matureness or development stage.