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

question 60

Multiple Choice

According to Tobin's q theory,when equity prices are high 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

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Definitions:

Class Background

A term referring to the socioeconomic environment and conditions in which an individual is raised, which can influence their beliefs, behaviors, and opportunities.

Racist Attitudes

Prejudiced beliefs or discriminatory behaviors based on racial or ethnic differences.

Deprivation

The state of lacking or being denied access to goods or resources that are considered to be basic necessities in a society.

Brym and Lie

A reference to authors of sociological texts, known for their contributions to the understanding of social phenomena and structures.