Which of the Following Is NOT an Assumption of the Behavior

question 140

Multiple Choice

Which of the following is NOT an assumption of the behavior of exchange rates in the short run?

• A) The adjustment period involves weeks rather than years.
• B) Market forces are irrelevant and "do not matter."
• C) Prices of goods adjust slowly and are therefore "sticky."
• D) Economic actors behave in their own self-interest.

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Definitions:

Two Groups

A research design involving comparison between two separate groups of participants to determine the effect of a variable.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

History Effect

refers to the impact that events occurring between the first and second measurements in an experiment have on the subjects' performance, independent of the experimental manipulation.

Regression Toward the Mean

A statistical phenomenon where extreme scores on a variable tend to be closer to the mean upon subsequent measurements.