Which of the following contributed to the sharp economic downturn during 2008?

Suppose you have $400 to invest at a nominal interest rate of 5 percent. If the inflation rate is 2 percent, then the real return on your investment is approximately

A) $12. B) $20. C) $28. D) $36.

Which of the following is not a basic assumption underlying the theory of consumer behavior?

A) Consumers prefer more to less. B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers. C) Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good. D) Consumers have well-behaved preferences, that is, preference orderings are complete.