Use Section 1.2.4 and appropriate readings from beyond this book to decide whether the following statements (S1 and \(\mathrm{S} 2\) ) are both true or whether one of them is false. Justify your answer.

S1: According to Tobin's q theory, the path of investment is independent of current cash flow (and profits).

S2: The empirical evidence shows that current cash flow is an important determinant of investment.