Asked by
Abraar Rahman
on Dec 11, 2024
Verified
During 1982-1997, stock prices increased substantially. Which of the following helped to boost stock prices during this period?
A) higher interest rates and rapid growth of corporate profits
B) lower interest rates and rapid growth of corporate profits
C) higher interest rates and slow growth of corporate profits
D) lower interest rates and slow growth of corporate profits
Interest Rates
The cost of borrowing money or the reward for saving money, expressed as a percentage of the amount borrowed or saved.
Corporate Profits
The earnings of corporations after expenses and taxes have been deducted.
Stock Prices
The monetary value assigned to a company's ownership shares, as determined by market supply and demand.
- Comprehend the effects of monetary policy and interest rates on the valuation of stocks and market performance.
Verified Answer
MR
Learning Objectives
- Comprehend the effects of monetary policy and interest rates on the valuation of stocks and market performance.