Tobin's Q Equals The

question 45

Multiple Choice

Tobin's q equals the:

• A) cost of buying and renting out one unit of capital measured in units of the economy's output.
• B) marginal product of capital minus the cost of capital.
• C) ratio of the replacement value of installed capital to the market value of installed capital.
• D) ratio of the market value of installed capital to the replacement cost of installed capital.

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