Refer to the graph below. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is an anticipated increase in aggregate demand to AD2, then according to the rational expectations economists, the path for adjustment runs from point:

An increase in the tariff on foreign-produced automobiles would most likely help

a. the domestic producers of automobiles. b. steel producers that sell most of their output to foreign producers of automobiles. c. workers in the foreign automobile industry. d. consumers looking for alternatives to domestic automobiles.

Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's annual explicit cost of capital is

a. $2,000. b. $4,000. c. $12,000. d. $14,000.