A Decline in the Output Gap Causes the Demand for Real

question 28

Multiple Choice

A decline in the output gap causes the demand for real balances

• A) to rise and the interest rate to fall.
• B) to fall and the interest rate to rise.
• C) and the interest rate to fall.
• D) and the interest rate to rise.

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Definitions:

Formal Communication

Structured exchange of information that follows established protocols or rules within an organization.

Informal Networks

The unofficial and interpersonal connections and pathways through which information and influence flow within an organization.

Communication Flows

The direction and manner in which information moves within and between organizations or individuals.

Human Relations Manager

A professional responsible for managing and improving the relationship between employees and the organization.