According to Tobin's Q Theory,when Equity Prices Are Low the Market

question 12

Multiple Choice

According to Tobin's q theory,when equity prices are low the market price of existing capital is ________ relative to new capital,so expenditure on fixed investment is ________.

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

---

Definitions:

Institutional Level

Refers to the operations or activities that occur within formal structures or organizations, such as schools, businesses, or government agencies, and how they impact society.

Fair Housing Act

A landmark law in the United States that was passed in 1968 to prevent discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, or sex.

Categorical Imperative

A foundational concept in Kantian ethics that asserts that moral actions are those that could be made into universal laws applicable to everyone.

Self-Defense

The right to prevent suffering force or violence through the use of a sufficient level of counteracting force or violence.