In an Effort to Address the Troubled Economy

question 36

Multiple Choice

In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not been this low "... since 2003, when the economy was growing at a snail's pace." www.csmonitor.com, 10/28/2008
These rate cuts are designed to

• A) decrease the real long-term interest rate and increase real GDP.
• B) increase the exchange rate and decrease government spending.
• C) increase bank reserves and the exchange rate.
• D) decrease the exchange rate and investment.

Understand the communication process, including the initiation and reception of messages, and the factors influencing effective communication.

Analyze the impact of organizational culture on communication strategies and practices.

Develop strategies for effectively managing and utilizing organizational grapevines.

Grasp the importance of considering different contexts and effects when solving business communication problems.

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, measured in terms of opportunity costs.

Long Run

A period in economics where all factors of production and costs are variable, allowing full adjustment to changes.

Demand Curve

A diagram that illustrates the connection between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.

Economic Profit

The difference between the total revenue earned by a business and the total costs (both explicit and implicit) of all resources used.