The Theory Behind Tobin's Q Indicates That

question 51

Multiple Choice

The theory behind Tobin's q indicates that:

• A) the stock market may be expected to predict every turning point in real GDP.
• B) the stock market may be expected to be closely tied to fluctuations in output and employment.
• C) every time investment goes up we would expect the stock market to go down.
• D) the stock market and the economy are basically independent of each other.

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