If central bankers raise the interest rate, the asset-price channel of monetary policy implies:

Name: If central bankers raise the interest rate, the asset-price channel of monetary policy implies:
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When central bankers raise the interest rate, investors usually shift their investments from stocks to bonds, which causes the demand for stocks to decrease and their prices to fall. Therefore, the asset-price channel of monetary policy implies that stock prices will decrease.

If Central Bankers Raise the Interest Rate, the Asset-Price Channel