Tobin's q theory suggests that monetary policy may affect investment spending through its impact on
A) stock prices.
B) interest rates.
C) bond prices.
D) cash flow.
A
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The laws of supply and demand force prices to an equilibrium.
Answer the following statement true (T) or false (F)
Which of the following is the correct formula for marginal revenue?
a. Marginal revenue = change in total revenue/change in quantity b. Marginal revenue = change in quantity/change in total revenue c. Marginal revenue = change in price/change in quantity d. Marginal revenue = change in quantity/change in price
List the reasons why the actual multiplier, which is estimated to be less than 2 for the U.S. economy, is much less than what the oversimplified formula suggests
A country will gain relatively more from trade when
A) trade is regulated. B) the world price is close to the country's opportunity cost of the good. C) the world price is below the country's opportunity cost of the good. D) the world price is much greater than the country's opportunity cost for the good.