When a government intentionally lowers the value of its currency, that is called depreciation

Assume you save $1,000 in a bank account that pays 8 percent interest per year and the inflation rate is 3 percent. At the end of the year you have earned

A) a nominal return of $50. B) a negative real return. C) a real return of $50. D) a real return of $80.

Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy?

A) Economies of scale. B) Advertising and image differentiation. C) The minimum efficient scale of operation in many industries is quite high relative to market demand. D) Risk spreading.