In general, the P/E ratio of a stock _______________ as inflation _____________.

Name: In general, the P/E ratio of a stock _______________ as inflation _____________.
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In general, when inflation increases, the P/E ratio of a stock tends to decrease. This is because higher inflation often leads to higher interest rates, which can make future earnings less valuable and reduce the demand for stocks, causing lower prices and therefore a lower P/E ratio.

In General, the P/E Ratio of a Stock _______________ as Inflation