Which of the Following Is True of Stock Prices

question 97

Multiple Choice

Which of the following is true of stock prices?

• A) An increase in the interest rate will tend to increase stock prices.
• B) A reduction in the interest rate will tend to increase stock prices.
• C) An increase in the inflation rate will tend to increase stock prices.
• D) There is no reason to believe that changes in interest rates will influence stock prices.

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Definitions:

Imported Steel

Steel that is produced in one country and brought into another for use in manufacturing or construction.

Domestic Industry

Industries within a country’s borders that produce goods or services for the local economy.

Public Choice Analysis

is a field of economics that applies economic reasoning to political science, analyzing government actions in terms of economic efficiency and individual behaviors.

Political Science

The study of politics, government systems, and political behavior, focusing on the theory and practice of politics and analyses of political systems and political activities.