An Increase in Interest Rates Results in A(n)________ in the Required

question 78

Multiple Choice

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

• A)increase; reduces
• B)increase; raises
• C)decrease; raises
• D)decrease; reduces

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Definitions:

Convergent Thinking

A cognitive process where an individual focuses on finding a single, correct solution to a problem, often involving the application of logical steps and rules.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem.

Creative People

Individuals who frequently engage in the process of generating new, original, and worthwhile ideas or solutions.

Reliable

Pertaining to the consistency and dependability of a measurement or test over time, yielding similar results upon repeated applications under the same conditions.