Rising business profits usually are associated with rising interest rates in the money and capital markets.

Question

Quizplus · Accepted Answer

Rising business profits do not directly cause rising interest rates in the money and capital markets. Interest rates are more directly influenced by central bank policies, inflation expectations, and the supply and demand for credit. Rising business profits can be a sign of a healthy economy, which might lead to higher interest rates if central banks decide to curb inflation, but the relationship is not direct.

Rising Business Profits Usually Are Associated with Rising Interest Rates