Problem
1. Why do firms hold inventories and why is their inventory investment a matter of interest to macroeconomists?
2. What is Tobin's q? How does it provide a theory of investment spending?
3. How are Tobin's q theory and the neoclassical theory of investment related?
4. How is residential investment related to housing prices?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.