If the Fed raises the federal funds rate, which of the following happens?

Assume you save $1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned

A) a nominal return of $50. B) a negative real return. C) a real return of $50. D) a real return of $80.

The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?

A) $0.43 per book B) $0.07 per book C) $2.30 per book D) $6.00 per book