Question 2:

Which of the following are autonomous transactions and which are induced transactions: a) Uncontrolled (by the government) private purchases of automobiles from Japan; b) Accumulation of official reserves of U.S. dollars by the Japanese government; c) Government purchase of military equipment abroad; d) Exports of beer to Germany by the U.S. government so that armed forces stationed there will not use deutchmarks to purchase German beer.

1. a) and c) are autonomous and b) and d) induced.

2. b) is induced and a), c) and d) autonomous.

3. all are autonomous.

4. all are induced.

Choose the correct option.