One of the ways that changes in interest rates affect various kinds of economic activity is through changes in the prices of various assets.

Question

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When interest rates change, it can affect the prices of assets such as stocks, bonds, and real estate. For example, when interest rates decrease, the demand for these assets may increase, causing their prices to rise. On the other hand, when interest rates increase, the demand for these assets may decrease, causing their prices to fall.

One of the Ways That Changes in Interest Rates Affect