As a firm expands its output, cost per unit of output (average cost) decreases and then increases. Average cost and output have

If the expected real interest rate in an economy is 6% and the expected inflation rate is 4%, then the nominal interest rate in the economy is:

A) 6%. B) 14%. C) 4%. D) 10%.

The government budget deficit, ________, is ________ when saving exceeds domestic investment

A) (T - G), created B) (T - G), partially financed C) (G - T), created D) (G - T), partially financed