People anticipate inflation will be 3 percent during the next several years. If this is true, when the real interest rate is 4 percent, the money interest rate will be

What statement best describes the relationship between average monthly water bills and precipitation levels in the United States?

a. Water bills are clearly higher where precipitation is lowest b. Water bills are clearly higher where precipitation is highest c. Water bills are mostly unrelated to precipitation levels d. Water bills are linked to precipitation only in Eastern cities e. Water bills are linked to precipitation only in Western cities

Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is

A) 20. B) 40. C) 80. D) Long-run average cost is constant at all levels of output.