Consumers can spend their entire disposable income.

________ monetary policy causes the real interest rate to ________

A) Expansionary; remain unchanged B) Contractionary; remain unchanged C) Expansionary; rise D) Contractionary; rise

Higher U.S. interest rates cause the value of the dollar to

A) rise, making U.S. goods relatively cheaper on world markets. B) fall, making U.S. goods relatively cheaper on world markets. C) rise, making U.S. goods relatively more expensive on world markets. D) fall, making U.S. goods relatively more expensive on world markets.