Using Tobins q theory, explain what you would expect to happen to the construction of new houses

Question:

Using Tobin’s q theory, explain what you would expect to happen to the construction of new houses as the prices of existing houses fall.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

See More Books

Question Posted: Dec 09, 2015 03:24 AM

See More Questions

Blanker, Inc., has paid a regular quarterly cash dividend of $0.50 per share for several years. The common stock is publicly traded. On February 21 of the current year, Blankers board of directors...
Your father just learned from his financial advisor that his retirement portfolio has a beta of 1.80. He has turned to you to explain to him what this means. Specifically, describe what you would...
O'Garro, Inc., has paid a regular quarterly cash dividend of $0.70 per share for several years. The common stock is publicly traded. On February 21 of the current year, O'Garro's board of directors...
Employee earnings records for Redding Company reveal the following gross earnings for four employees through the pay period of December 15. D. Edwards ........... $83,500 A. Seligman...
What type of operational questions could a delivery firm like UPS expect to automate with the companys decision support system?
Business analysts hoping to provide information helpful to American grape growers compiled these data about vineyards: size (acres), number of years in existence, state, varieties of grapes grown,...
What are some of the best practices to manage information security and privacy in terms of procedural, technical, and physical controls?
A camera of mass 240 g is mounted on a small tripod of mass 200g, assuming that the mass of the camera is uniformly distributed and that the line of action of the weight of the tripod passes through...
Preliminary analytical reviews are performed to obtain an understanding of the business and its environment. Analytical procedures are an important part of the audit process and are applied during...
Larissa has been talking with the companys directors about the future of East Coast Yachts. To this point, the company has used outside suppliers for various key components of the companys yachts,...
According to the theory first presented in Chapter 3 and developed further in this chapter, the interest rate and investment are negatively related. Yet both business investment and interest rates...
The procyclical nature of much investment spending tends to reduce the stability of the private economy. Suppose an investment tax credit plan is put in place under which the percentage tax credit...
Universal Operations pays its employees monthly. Payments made by the company on November 30, 2019, follow. Cumulative amounts paid to the persons named prior to November 30 are also given. 1. Tony...
If an economy has an inflationary expenditure gap, the government could attempt to bring the economy back toward the full-employment level of GDP _________ by taxes or ________ government...
What were the monetary and fiscal policy responses to the Great Recession? What were some of the reasons suggested for why those policy responses didnt seem to have as large an effect as anticipated...
The economys current level of equilibrium GDP is $780 billion. The full-employment level of GDP is $800 billion. The multiplier is 4. Given those facts, we know that _______ the economy faces...
What do economists mean when they say that the Federal Reserve Banks are central banks, quasi-public banks, and bankers banks?
A single commercial bank in a multibank banking system can lend only an amount equal to its initial preloan ______________. a. total reserves b. excess reserves c. total deposits d. excess deposits
Consider the region bounded by the graphs of y = x16 - x 2 , y = 0, x = 0, and x = 4. Find the volume of the solid generated by revolving the region about the y-axis.
Explain the Hawthorne effect.
Using the consumption and saving data in question 2 and assuming investment is $16 billion, what are saving and planned investment at the $380 billion level of domestic output? What are saving and...
Using the consumption and saving data in question 2 and assuming investment is $16 billion, what are saving and planned investment at the $380 billion level of domestic output? What are saving and...
Why is saving called a leakage? Why is planned investment called an injection? Why must saving equal planned investment at equilibrium GDP in the private closed economy? Are unplanned changes in...
Write an equation for the polynomial graphed below 5+ 4 + -5-4-3-2 y = 3. 2- 1 + + 2 3 4 5 -2 345 -5+
How can ethical leadership principles be leveraged to navigate the complexities of organizational dynamics and promote a culture of integrity, accountability, and social responsibility ?
Consider the 12-QAM constellation shown in Figure 2 and the baseband pulse, g(t) depicted in Figure 3. The 12 passband transmit waveforms are represented as Sm1(t) = Amig(t) cos (2fet) - Amag(t) sin...

Using Tobins q theory, explain what you would expect to happen to the construction of new houses

Question:

Step by Step Answer:

Tobins q is the ratio of the market value of existing capital to its ...View the full answer

Macroeconomics

Students also viewed these Economics questions