When Canadian Interest Rates Fall the

question 37

Multiple Choice

When Canadian interest rates fall the

• A) demand curve for Canadian dollars in the foreign exchange market shifts rightward.
• B) Canadian inflation rate falls.
• C) demand for Canadian exports decreases.
• D) supply curve of Canadian dollars in the foreign exchange market shifts leftward.
• E) Canadian dollar depreciates.

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Definitions:

Habituation

The psychological process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Stimulus Generalization

The psychological process by which a response is elicited by stimuli similar to the original stimulus to which the response was conditioned.

Classical Conditioning

A conditioning method in which repeated pairings of two stimuli lead to a response that, though originally elicited by the second stimulus, is eventually elicited by the first stimulus alone.

Little Albert

An early experiment in psychology by John B. Watson and Rosalie Rayner that demonstrated how emotional responses, such as fear, could be conditioned in humans.