If coal prices are rising faster than the rate of interest, then
A)investors should buy coal instead of bonds.
B)investors should buy bonds instead of coal.
C)coal prices should be expected to fall.
D)bond prices should be expected to rise.

Question

Quizplus · Accepted Answer

If coal prices are rising faster than the rate of interest, it means that investing in coal is providing higher returns than investing in bonds. Therefore, investors should buy coal instead of bonds to maximize their profits.

If Coal Prices Are Rising Faster Than the Rate of Interest