In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to

If the exchange rate between the yen and the dollar changes from 110 yen = $1 to 100 yen = $1, then:

a. the dollar has depreciated in value. b. U.S.-made goods will become more expensive to Japanese citizens. c. the dollar has appreciated in value. d. Japanese-made goods will become less expensive to U.S. citizens. e. there will be a decrease in the demand for dollars in the foreign exchange market.

Firms in industrial countries find a larger market for their goods in other industrial countries than in developing countries because:

a. the consumption patterns in the industrial countries are highly heterogeneous. b. the trade policies of the industrial nations are more favorable than the developing countries. c. the industrial countries tend to have a higher population than the developing countries. d. the industrial countries are capital intensive countries. e. the consumption patterns in the industrial countries are more or less uniform.