Changes in interest rates affect stock prices because changes in interest rates affect
A) the amount of money in the economy.
B) real GDP, which affects the profitability of firms.
C) government purchases, which increases the amount of money in the economy.
D) government purchases, which affects the profitability of firms.
Correct Answer:
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Q5: The interest rate on a Treasury bill
Q6: The interest rate on a Treasury bill
Q7: If the interest rate is 3 percent,
Q8: If the interest rate is 9 percent,
Q9: Use the money demand and money supply
Q10: What is the interest rate for a
Q11: Stock prices tend to rise when investors
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