Which of the Following Is a Disadvantage of Informal Communications

question 156

Short Answer

Which of the following is a disadvantage of informal communications?
Managers can easily interrupt the flow of information which the employees may believe to be important.
Good news may spread very rapidly through the informal channel.
It flows through the chain of command.
Rumours and distorted or inaccurate information may be flowing through the grapevine at a fast rate.
Studies have shown that the rumours and gossip on the grapevine are almost always accurate.

Interpret how changes in income affect consumption and saving.

Analyze the consumption function and its determinants.

Recognize how consumption and saving behavior changes with changes in income.

Understand the impact of expectations on consumption.

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Definitions:

Forward Exchange Rate

An agreed exchange rate for a currency transaction that will occur at a future date.

Spot Exchange Rate

The current price for exchanging one currency for another, available for immediate delivery.

Interest Rate Parity

An economic theory that suggests the difference in interest rates between two countries will be equal to the difference in exchange rates between their currencies.

Interest Rate Differential

The difference in interest rates between two distinct economic regions or financial instruments, often influencing currency values and investment flows.