A market is said to achieve allocative efficiency when producer surplus is at its maximum level

This Application examines the concept of

A) sticky prices. B) consumer spending habits. C) stagflation. D) the wealth effect.

An increase in the real interest rate in the United States will cause the dollar to ________ relative to other currencies and ________ net exports and real GDP

A) appreciate; increase B) appreciate; reduce C) depreciate; increase D) depreciate; reduce