Concerning the Grapevine, All of the Following Statements Are Correct

question 5

Multiple Choice

Concerning the grapevine, all of the following statements are correct EXCEPT

• A) the grapevine is an informal communication channel.
• B) information on the grapevine is wrong most of the time.
• C) the grapevine is a frequent source of information for employees.
• D) grapevines convey information rapidly.

---

Definitions:

45-Degree Line

In economics, a graphical representation used in Keynesian cross diagrams, where the line represents points where aggregate expenditure equals national income.

APC

The average propensity to consume, which is the ratio of consumption spending to disposable income.

Dissaving

Occurs when individuals withdraw funds from their savings, often due to expenditures exceeding income during a specific period.

Autonomous Consumption

The level of consumption that occurs when income is zero; it is the base level of spending that must occur even if an individual has no income.