When the value of our goods exports is less than the value of our goods imports,
a. d and e.
b. the value of the dollar must fall.
c. there will be domestic unemployment.
d. there will be an unfavorable balance of trade.
e. foreign currency reserves must fall.
Question 2
The change in consumption divided by a change in disposable income is defined as:
a. the marginal propensity to consume.
b. autonomous consumption.
c. the consumption function.
d. Keynes' absolute disposable income hypothesis.
e. transitory consumption.
At breakfast, a middle-class husband sits absorbed in the newspaper and the public affairs of the da
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