Discuss the short- and long-run consequences of the trend


Problem

1. During the second quarter of 2010 rumors about the health of the Greek economy created significant fluctuations in stock prices all over the world. Explain the effects of changes in stock prices on investment levels according to Tobin's q theory.

2. A relatively recent trend in most developed countries, including the United States, is the creation of single person households. Discuss the short- and long-run consequences of this trend in housing prices and residential investment.

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.

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Macroeconomics: Discuss the short- and long-run consequences of the trend
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