In the goods market, firms ________ and households ________. ...

[torybrooks]

In the goods market, firms ________ and households ________.
 
  A) supply goods and services; purchase goods and services
  B) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit
  C) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services
  D) purchase goods and services; supply goods and services
  E) hire land, labor, capital, and entrepreneurship services; supply goods and services

Question 2

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.

[lauravaras]

Answer to Question 1

A

Answer to Question 2

A