True or False: Expansionary fiscal policy is more likely to lead to a short-run increase in investment when the investment accelerator is large than when it is small. True False When the interest rate sensitivity of investment is large, expansionary fiscal policy is likely to lead to a short-run increase in investment than when the interest rate sensitivity of investment is small.

The maximum amount of money that a consumer can charge on a credit card is called the

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Mbo works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. the hierarchy ends in individual objectives set by each employee. this is an example of mbo working as objectives through the organization.