Question
1. a. According to the neoclassical theory of investment, how do firms determine their desired level of capital stock and optimal amount of investment spending?
1.a. According to the neoclassical theory of investment, how do firms determine their desired level of capital stock and optimal amount of investment spending?
b. What will be the effect of a prolonged and sizeable increase in stock prices on business investment? Explain utilizing from Tobin's q theory?
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Modern Principles Microeconomics
Authors: Tyler Cowen, Alex Tabarrok
4th Edition
1319098762, 978-1319098766
