Interest rates and stock prices tend to move in opposite directions.

Name: Interest rates and stock prices tend to move in opposite directions.
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Question

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Generally, when interest rates rise, stock prices tend to fall because higher borrowing costs can reduce corporate profits and investors may shift to bonds, which become more attractive. Conversely, when interest rates fall, stock prices often rise as borrowing costs decrease and bonds yield less, making stocks more attractive.

Interest Rates and Stock Prices Tend to Move in Opposite