Register
A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds. A) increase; more B) decrease; less C) decrease; more D)
227k views
3 votes
A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds. A) increase; more B) decrease; less C) decrease; more D) increase; less E) increase; similar

User Alex Shkor
by
5.2k points

1 Answer

3 votes

Answer:

The answer is A

Step-by-step explanation:

A decrease in interest rates will increase the demand(demand curve shifts to the right) for stocks and vice-versa because stocks will be selling at a lower amount since the interest rate is down. Whereas an increase in interest rate will decrease the price of stock because stock will be selling at higher price.

Stocks will now be cheaper than debts due to the low interest rate.

User Factorypolaris
by
5.1k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
How do i figure out a months ending capital
Link Copied!