An increase in interest rates results in a(n)________ in the required rate of return to hold stocks and ________ current stock prices.

Name: An increase in interest rates results in a(n)________ in the required rate of return to hold stocks and ________ current stock prices.
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Stock and bond markets are closely connected. When market interest rates rise, newly issued bonds become more attractive compared to stocks, so stock prices fall as savers choose to move funds from stocks to bonds.

An Increase in Interest Rates Results in A(n)________ in the Required