When there is a run up in stock prices
A) saving increases.
B) investment increases.
C) inflation increases.
D) interest rates decrease.

Question

Quizplus · Accepted Answer

When there is a run up in stock prices, investors feel more optimistic about the future profitability of companies and are more likely to invest in them. This increase in investment can lead to a further increase in stock prices as companies are able to use the investment to grow and expand their operations.

When There Is a Run Up in Stock Prices