The nominal interest rate is eight percent and the consumer price index rises from 140 to 147 . What is the real interest rate?

The theory that monetary policy conducted on a discretionary, day-by-day basis leads to poor long-run outcomes is referred to as the

A) adverse selection problem. B) moral hazard problem. C) time-inconsistency problem. D) nominal-anchor problem.

From 1980 to 2000, the yen—dollar exchange rate fell from 240 yen/dollar to 102 yen/dollar, while the dollar—pound exchange rate fell from 2.22 dollars/pound to 1.62 dollars/pound. As a result

A) the dollar appreciated relative to the yen, but depreciated relative to the pound. B) the dollar depreciated relative to the yen, but appreciated relative to the pound. C) the dollar appreciated relative to both the yen and the pound. D) the dollar depreciated relative to both the yen and the pound.