The "Q Theory of Investment," or "Tobin's Q," States That

question 86

Multiple Choice

The "q theory of investment," or "Tobin's q," states that

• A)a rise in the stock market would lead firms to increase their rate of capital investment.
• B)a fall in the stock market would lead firms to increase their rate of capital investment.
• C)a rise in the stock market would lead firms to decrease their rate of capital investment.
• D)there is no relationship between the stock price changes and the capital investment.

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A pamphlet written by Thomas Paine in 1776 advocating independence from Great Britain to people in the Thirteen Colonies, emphasizing the need for common sense judgement.

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An influential English-born American writer and political activist during the 18th century, best known for his powerful and persuasive pamphlets advocating independence from Great Britain.

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