Figure 19-10 -Refer to Figure 19-10.Under the Bretton Woods System of Exchange

question 29

Multiple Choice

Figure 19-10
-Refer to Figure 19-10.Under the Bretton Woods System of exchange rates,if the par exchange rate was $2 per pound in the figure above,and equilibrium persisted at $3,then this was evidence of ________ and the IMF would allow a ________ in the exchange rate.

• A)fundamental disequilibrium; revaluation
• B)fundamental disequilibrium; devaluation
• C)fundamental overvaluation; devaluation
• D)fundamental overvaluation; revaluation

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Definitions:

Construct

An idea or theory containing various conceptual elements, typically considered to be subjective and not based on empirical evidence.

Directs Behavior

Directing behavior refers to the ways in which cognitive processes, environmental cues, and personal goals influence an individual's actions and decision-making.

Constructs Predict

Theoretical concepts or ideas proposed to forecast outcomes or behaviors based on certain conditions.

Fundamental Postulate

A core principle in Kelly's personal construct theory stating that a person's processes are psychologically channelized by the ways in which he anticipates events.