Stock market analysts often argue that lower interest rates are good for the stock market. Does this argument make sense?
A) No; lower interest rates will tend to slow down the economy, and this will be bad for the stock market.
B) Yes; the lower rates of interest will increase the value of future income (and capital gains) , and stock prices will rise to reflect this factor.
C) No; the lower rates of interest will reduce the value of future income (and capital gains) , and this will cause stock prices to fall.
D) Yes; the lower interest rates will cause inflation, and inflation is generally good for the stock market.
Correct Answer:
Verified
Q8: Historically, which of the following has had
Q9: Currently, about _ of U.S. households own
Q10: During the last two centuries, after adjustment
Q11: Which of the following is true about
Q12: Which of the following indicates why the
Q14: Which of the following about stock is
Q15: Which of the following is an advantage
Q16: The random walk theory of stock prices
Q17: Compared to other investments such as bonds,
Q18: Which of the following about stock prices
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents