If interest rates fall and all else is equal, the price of a stock will

Name: If interest rates fall and all else is equal, the price of a stock will
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Question

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When interest rates fall, investors are more likely to invest in stocks as the return on savings and bonds is now lower. This increased demand for stocks will drive the price of the stock up, therefore, the price of a stock will rise when interest rates fall, all else being equal.

If Interest Rates Fall and All Else Is Equal, the Price