Kelly puts money in a savings account. One year later she has two percent more dollars and can buy three percent more goods. Kelly earned a real interest rate of
a. two percent and prices fell one percent.
b. two percent and prices rose one percent.
c. three percent and prices rose one percent.
d. three percent and prices fell one percent.
d
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In terms of imports to the colonies, ______ and ______ were the top two trading partners
a. the United Kingdom; Africa b. Southern Europe; the West Indies c. the West Indies; the United Kingdom d. the United kingdom; Southern Europe.
The MC of a firm:
A. crosses TC at its minimum. B. crosses AVC and ATC at its minimum. C. crosses MR at the above the profit-maximizing level of output. D. is a horizontal line indicating that costs are constant in perfect competition.
When Firm A increased its production last year, its average total cost of production decreased. On the other hand, Firm B also increased its production last year, but its average total cost of production increased. Considering the given situation, which of the following statements is true of the two firms?
a. The size of the plant in Firm A is smaller than the size of the plant in Firm B. b. Firm A is operating with increasing returns to scale, while Firm B is operating with decreasing returns to scale. c. Firm A is operating with decreasing returns to scale, while Firm B is operating with increasing returns to scale. d. Firm A invests more on labor and cheaper variable costs, while Firm B invests more in expensive machinery.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B