James Tobin Reasoned That

question 31

Multiple Choice

James Tobin reasoned that:

• A) the stock market is a "random walk."
• B) if the stock market values capital at less than its replacement cost, the stock market will go up.
• C) if the stock market values capital at less than its replacement cost, the stock market will go down.
• D) if the stock market values capital at less than its replacement cost, the firm's managers will not replace capital as it wears out.

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Definitions:

Mistaken Identifications

A cognitive error where an individual incorrectly identifies a person or object as being someone or something they are not.

Physical Description

A detailed account or representation of the appearance and characteristics of a person, place, or thing.

Psychological Profile

A detailed description of an individual's psychological traits, behaviors, and tendencies.

Target-Absent Lineup

A lineup in which the person who committed the crime is not present in the lineup.