According to economic theory, a rising money supply influences stock prices through a(n)__________ in the __________ stock.

Question

Quizplus · Accepted Answer

According to economic theory, when the money supply increases, there is an increase in the demand for stocks. This is because individuals and entities have more money to invest and are likely to invest in stocks, driving up the demand for stocks and hence the stock prices.

According to Economic Theory, a Rising Money Supply Influences Stock