Question

If monetary policy becomes more transparent about the future course of interest​ rates, how would that affect stock​ prices, if at​ all? A. Stock prices will​ increase, as the risk and required return on the investment will be reduced. B. Stock prices will remain​ unchanged, as increased transparency will not affect investment decisions. C. Stock prices will decrease because investors are now aware of stock prices and​ won't overpay. D. Stock prices will be​ unaffected, as stock prices and transparent monetary policy are unrelated.

Answer 1

A. Stock prices will​ increase, as the risk and required return on the investment will be reduced

Step-by-step explanation: