Which of the following would be most likely to push stock prices higher?
A) higher interest rates and the expectation of larger future corporate profits
B) higher interest rates and the expectation of smaller future corporate profits
C) lower interest rates and the expectation of larger future corporate profits
D) lower interest rates and the expectation of smaller future corporate profits

Question

Quizplus · Accepted Answer

Lower interest rates reduce borrowing costs and can stimulate investment, while the expectation of larger future corporate profits increases investor confidence, both of which can drive stock prices higher.

Which of the Following Would Be Most Likely to Push