Assume the International Fisher Effect Exists and the Inflation Rate

question 28

Multiple Choice

Assume the international Fisher effect exists and the inflation rate in the U.S.exceeds the inflation rate in Canada.What can we state for certain given this information?

• A)Nominal rates in the United States exceed nominal rates in Canada.
• B)Real rates in Canada exceed real rates in the United States.
• C)The inflation rate in Canada will increase so it equals the U.S.inflation rate.
• D)Nominal rates in Canada exceed nominal rates in the United States.
• E)Nominal rates will be the same in both countries.

---

Definitions:

Fostering Change

The act of encouraging or promoting adaptations or transformations within an organization, community, or individual's behavior and practices.

Employee Empowerment

A management philosophy that emphasizes giving employees the autonomy, resources, and skills to make decisions within their areas of responsibility.

Involvement Programs

Initiatives designed to engage employees in decision-making processes and to increase their input and commitment to the organization.

Human Resources Practices

The methods, policies, and procedures implemented by organizations to manage and develop their workforce, including recruitment, training, appraisal, and compensation.