Which of the following would be recorded in the U.S. goods export account?
a. Harry, an American citizen, spends 1,000 francs on vacation in the south of France.
b. A machine shop in Ohio purchases a grinder made in Italy.
c. Martha receives a 50 dividend check on stock she owns in a business in Germany.
d. The U.S. government subsidizes American farmers for planting corn for export.
e. France purchases a new jet fighter aircraft from the Boeing Company in the United States.
Question 2
The ratio of a change in consumption to a change in disposable income is the:
a. consumption function.
b. propensity to consume.
c. average propensity to consume.
d. extra propensity to consume.
e. marginal propensity to consume.
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