Inflation must be high in Moscow because it is very expensive to live there

The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit.  Given the above, if the firm produces 20 units of output, what is average fixed cost?

A. $600 B. $150 C. $50 D. $1.50 E. none of the above

If the nominal interest rate is higher than the inflation rate, the value of your savings:

A. should remain about the same. B. cannot be assessed without knowing the beginning balance of savings. C. will decrease. D. will increase.