A technological advance can lead to an increase in stock prices primarily through
A) lower interest rates.
B) higher expected earnings.
C) higher levels of lending.
D) none of the above.

Question

Quizplus · Accepted Answer

Technological advances can lead to higher expected earnings for companies by improving efficiency, reducing costs, or creating new revenue opportunities, which can in turn lead to an increase in stock prices as investors anticipate higher future profits.

A Technological Advance Can Lead to an Increase in Stock