An increase in interest rates results in a(n) ________ in the required rate of return to hold stocks and ________ current stock prices.

A. decrease; reduces
B. decrease; raises
C. increase; reduces
D. increase; raises


Answer: C

Economics

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A. the Great Crash. B. relative financial stability for over 70 years. C. a further decline that lasted for 25 years. D. the Great Depression to be worse than it needed to be.

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The development of instantaneous electronic communication and transaction markets has increased the potential for market arbitrage

Indicate whether the statement is true or false

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Cost-plus pricing and guaranteed profit regulation give the same results

a. True b. False Indicate whether the statement is true or false

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When banks transform excess reserves into loans, the money supply ultimately increases because borrowers spend the money they borrow, and that money eventually ends up in someone's checking account, an element of the money supply

Indicate whether the statement is true or false

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