Categorization of activities in an organization along product or geographic lines is called:

If a government chooses to finance a budget deficit by borrowing and the expected inflation rate does not change, this will cause the real interest rate to ________ and the nominal interest rate to ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

The assumption that firms attempt to maximize profits will yield good predictions even if firms sometimes pursue other goals

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