In the Baumol model, the optimal sale amount is ________ with higher interest rates and ________ with a higher cost of selling securities.

A) decreased; increased
B) decreased; decreased
C) increased; increased
D) increased; decreased

Answer: A) decreased; increased

Business

You might also like to view...

The Jay Group hires better employees than its competition by conducting effective searches and multi-tiered interviews. The company also provides high quality training to its employees, an aspect often neglected by competitors

The Jay Group is most likely to gain a strong competitive advantage through which type of differentiation? A) image differentiation B) people differentiation C) services differentiation D) product differentiation E) channel differentiation

Business

A company may set predetermined overhead rates based on normal, expected annual, or theoretical capacity. At the end of a period, the fixed overhead spending variance would

a. be the same regardless of the capacity level selected. b. be the largest if theoretical capacity had been selected. c. be the smallest if theoretical capacity had been selected. d. not occur if actual capacity were the same as the capacity level selected.

Business