Exhibit 27-1 -According to the Data in Exhibit 27-1

question 124

Multiple Choice

Exhibit 27-1
-According to the data in Exhibit 27-1,

• A)real interest rates are negatively related to inflation.
• B)real interest rates are negatively related to the gap between real and potential GDP.
• C)real interest rates and real GDP are positively correlated.
• D)the Fed does not follow a monetary policy rule.
• E)the nominal interest rate will rise less than inflation.

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Definitions:

Adams' Theory

Refers to Equity Theory developed by J.Stacy Adams, suggesting that employees are motivated when they perceive their treatment at work as fair, especially in relation to others.

Inequity

A lack of fairness or justice within a situation or towards individuals or groups.

McGregor's Theory X/Y

A concept of human motivation within the organizational context, contrasting Theory X (people inherently dislike work) and Theory Y (work is natural and can be a source of satisfaction).

Preferences For Equity

The inclination toward fairness in allocations of rewards or resources among members of a group, based on the principle that contributions and benefits should be proportionate.