The average-fixed-cost curve is constant

If the government issues new government bonds to finance a budget deficit, the real interest rate in financial markets will ________ and investment spending will ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

When an input represents a larger proportion of a firm's total costs, then

A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.