A decline in Tobin's q can be caused by ________
A) a rise in the market value of a firm
B) an increase in stock prices
C) a decline in stock prices
D) a decline in the replacement cost of capital
C
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According to these relationships, the competitive output level arises where
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. QC = 25 b. QC = 20 c. QC = 40 d. none of the above
Consumer confidence in the economy falls, and as a result, aggregate demand decreases. As real GDP falls below potential GDP, if the Fed followed Friedman's k-percent rule, the Fed would
A) increase the quantity of money more than usual. B) continue allowing the quantity of money to grow at "k" percent. C) increase government expenditures. D) lower the federal funds rate. E) raise the federal funds rate.
Which of the following situations is least likely to involve strategic interaction?
A) two countries deciding whether to impose trade restrictions on each other B) competing convenience stores deciding how much to charge for coffee C) two customers deciding which toaster to buy from Target D) a state legislature deciding whether to legalize casino gambling
Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2. B) $3. C) $4. D) $5.