If the Exchange Rate Between Two Countries Is Expected to Remain

question 31

Multiple Choice

If the exchange rate between two countries is expected to remain fixed at its current rate,then

• A)output growth rates must be equal in the two countries.
• B)price levels must be equal in the two countries.
• C)inflation rates must be equal in the two countries.
• D)nominal interest rates must be equal in the two countries.
• E) none of the above

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxieties through gradual exposure to the feared object or situation, coupled with relaxation training.

Therapy

A treatment intended to relieve or heal a disorder, often involving psychological techniques for mental health issues.

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the frequency of the behavior.

Classical Conditioning

An educational process where continuous pairing of two stimuli leads to the response initially triggered by the second stimulus being eventually triggered by the first stimulus.