Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
a. the Japanese yen has appreciated in value.
b. U.S. citizens will buy more Japanese imports.
c. Japanese will demand more U.S. exports.
d. U.S. citizens will buy less Japanese imports.
Question 2
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line.
a. True
b. False
Indicate whether the statement is true or false
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