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Author Question: Which ratio correctly highlights the similarity between neoclassical theory and Tobin's q theory? ... (Read 65 times)

jrubin

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on: Jun 30, 2018
Which ratio correctly highlights the similarity between neoclassical theory and Tobin's q theory?
 
  A) the marginal product of capital divided by the user cost of capital
  B) a firm's stock value divided by the value of its capital stock
  C) a firm's capital stock divided by the value of its inventories
  D) a firm's investment spending divided by the user cost of capital

Question 2

The IS curve is Y = 20 - 1.5r, and the aggregate demand curve is Y = 15.5 - 0.3. The monetary policy curve is ________.
 
  A) r = 4.5 - 1.8
  B) r = 20 + 0.3
  C) r = 3 + 0.2
  D) Y = 17.75 + 0.6
  E) none of the above


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yasmin

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


jrubin

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Reply #2 on: Jun 30, 2018
Thank you :)


yasmin

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Reply #3 on: Jun 30, 2018
Happy to help you


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