According to Tobin's Q Theory,when Q Is ________,Firms Will Not

question 44

Multiple Choice

According to Tobin's q theory,when q is ________,firms will not purchase new investment goods because the market value of firms is ________ relative to the cost of capital.

• A)low;low
• B)low;high
• C)high;low
• D)high;high

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Definitions:

Caveat Emptor

A Latin phrase meaning "let the buyer beware," implying that the buyer assumes the risk for the quality and condition of goods purchased, especially without a warranty.

Legal Concept

A principle or framework of laws that is recognized and enforced by a legal system.

Unauthorized Use

The use of a product, service, or information without permission or in violation of its intended use or laws.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields, including inventions, literary and artistic works, designs, and symbols, names, and images used in commerce.