The U.S. exports computers with a domestic price of $100,000 and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125
What is the yen price of the computers on January 1, 2003? What is the yen price of the computers on January 1, 2004?
January 1, 2003: $100,000 × 120 yen/dollar = 12,000,000 yen
January 1, 2004: $100,000 × 125 yen/dollar = 12,500,000 yen
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The marginal propensity to consume domestic goods is the
A. MPC - MPM. B. MPC - MPS. C. MPC + MPM. D. MPC + MPS.