Eventually the process of capital deepening comes to a halt as depreciation catches up with total saving

If there are no changes in inflation expectations, a fall in the federal funds rate:

A) increases both the long-run nominal interest rate and the long-run expected interest rate. B) decreases the long-run nominal interest rate and increases the long-run expected interest rate. C) decreases both the long-run nominal interest rate and the long-run expected interest rate. D) increases the long-run nominal interest rate and decreases the long-run expected interest rate.

In a perfectly competitive market, all firms in the long run earn:

A) positive economic profit. B) positive accounting profit. C) zero economic profit. D) zero accounting profit.