If interest rates decrease, making bonds less attractive, the demand for stock will _____ and the price of stock will _____.

Question

Quizplus · Accepted Answer

When interest rates decrease, bonds yield lower returns, making them less attractive compared to stocks. As a result, investors are more likely to buy stocks, increasing the demand for stocks. This increased demand typically leads to an increase in stock prices.

If Interest Rates Decrease, Making Bonds Less Attractive, the Demand