All questions are compulsory.
All questions carry equal
marks.
1.
Write short notes on
any two: 2½ *2
a) Tobin q
b) J Curve
c) Random Walk Hypothesis
2.
Discuss the evidence
that were consistent with Keynes
conjuncture and which were not consistent with them. 5
3.
Explain the life cycle hypothesis and discuss how
life cycle hypothesis attempts to reconcile between short run variability and long
run consistency of consumption? 5
4.
In essence the rental price of capital approach to
investment is not fundamentally different from Tobin q. Explain. 5
