If UIP holds, the interest rate at home is 4%, and the exchange rate is expected to depreciate by 3%, then the foreign interest rate is:

What do you think Eminem's incentive is to give a free show? Was his decision made in self-interest or in the social interest? Explain your answer

What will be an ideal response?

During periods of deflation, the real interest rate will be lower than the nominal interest rate

a. True b. False Indicate whether the statement is true or false