A temporary negative supply shock ________ real interest rates and ________ output in the short run,thereby its effect on stock prices is ________.
A)raises;lowers;negative
B)raises;raises;ambiguous
C)lowers;raises;negative
D)lowers;raises;positive

Question

Quizplus · Accepted Answer

A temporary negative supply shock raises real interest rates due to increased prices and reduced supply of goods, lowers output as production decreases, and generally has a negative effect on stock prices due to decreased corporate profits and higher discount rates.

A Temporary Negative Supply Shock ________ Real Interest Rates and ________

A Temporary Negative Supply Shock Real Interest Rates and