The slope of the LM curve has been shown to depend most crucially on the interest elasticity of

Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q2/100) and a marginal cost function of MC = 8 + (Q/50). Suppose the firm also has an avoidable fixed cost of $225. What is the efficient scale of production, and what is the minimum average cost?

A. Qe = 0; AC = $8 B. Qe = 106; AC = $10.95 C. Qe = 150; AC = $10.83 D. Qe = 22,500; AC = $9.25

Per capita GDP will definitely increase if

A. Population and GDP decrease at the same rate. B. GDP and population increase at the same rate. C. GDP increases more rapidly than population. D. Population increases more rapidly than GDP.