An increase in inflation in the United States relative to the rate in France would make:
a. U.S. goods relatively less expensive in the United States and in France.
b. French goods relatively less expensive in the United States and U.S. goods relatively more expensive in France.
c. French goods relatively more expensive in the United States and in France.
d. French goods relatively more expensive in the United States and U.S. goods relatively less expensive in France.
Question 2
Real disposable income is held constant when constructing a consumption function.
a. True
b. False
Indicate whether the statement is true or false
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