Asked by Franco Volschenk on Jun 29, 2024
Verified
Stock prices often rise when the Fed raises interest rates.
Stock Prices
The market price at which shares of a public company's stock are bought and sold.
Fed
Short for the Federal Reserve, which is the central banking system of the United States, responsible for monetary policy.
Interest Rates
The cost of borrowing money or the return on investment, expressed as a percentage of the principal.
- Analyze how changes in interest rates influence investment and consumption patterns.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
False
Explanation :
Stock prices often fall when the Fed raises interest rates because higher rates can reduce economic growth and corporate profits, making stocks less attractive to investors.
Learning Objectives
- Analyze how changes in interest rates influence investment and consumption patterns.
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