Following the stock market crash of 1929 depositors demanded their money back, the Fed failed to act as the lender of last resort by lending banks money to repay depositors, and between 1930 and 1933 about one-third of all banks had failed

John Maynard Keynes described periods of irrational pessimism and optimism that affect the investment behavior of firms as animal spirits. When considering the investment behavior of firms, animal spirits can be thought of as changes in the

A) actual marginal product of capital. B) capital stock. C) expected marginal product of capital. D) user cost of capital.

All of the following describe the conflict between divisions EXCEPT

a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. A divisional manager does not have authority to run her division efficiently