Which of the following measures how the level of well-being in a country has changed over time?

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?

A) 8 percent B) 3 percent C) 13 percent D) 11 percent

The __________ is always larger than the __________

A) yield on a discount basis; coupon equivalent yield B) yield on a discount basis; bond equivalent yield C) coupon equivalent yield; yield on a discount basis D) None of the above.