Suppose that the production function for the economy is Y = AK0.2L0.8. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 1, real GDP is

A trade surplus exists if export spending is less than import spending

Indicate whether the statement is true or false

When interest rates rise in the United States (with the price level fixed), the value of the dollar ________, domestic goods become ________ expensive, and net exports ________

A) falls; less; fall B) falls; more; rise C) rises; more; fall D) rises; less; fall