The data on U.S. nominal interest rates and inflation rates tends to:
A. serve as evidence against the Fisher Effect, since nominal interest rates and inflation rates seem to move in opposite directions.
B. serve as evidence against the Fisher Effect, since nominal interest rates and inflation rates seem to move in the same direction.
C. provide support for the Fisher Effect, since nominal interest rates and inflation rates seem to move in opposite directions.
D. provide support for the Fisher Effect, since nominal interest rates and inflation rates seem to move in the same direction.
Ans : D. provide support for the Fisher Effect, since nominal interest rates and inflation rates seem to move in the same direction.
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The monopsonistic exploitation of labor refers to
A) the reduction in total output from monopoly in the product market. B) the union wage differential. C) workers being paid a wage less than their marginal revenue product. D) the reduction in employment resulting from union wage setting.
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically have ample incentives to run their division efficiently