Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate?

According to the interest parity condition, if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent, then the expected ________ of the foreign currency must be ________ percent

A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4

If manufacturer's new orders received for consumer goods are starting to fall, real GDP is most likely

A) beginning to rise. B) bottoming out. C) getting ready to decrease. D) already decreasing.