Business, 02.08.2019 15:30 makayla912

What will happen to interest rates if the public suddenly expects a large increase in stock prices? a. interest rates will rise because the expected increase in stock prices raises the expected return on stocks relative to bonds and so the demand for bonds decreases b. interest rates will fall because the expected increase in stock prices raises the expected return on stocks relative to bonds and so the demand for bonds decreases c. interest rates will rise because the expected increase in stock prices raises the liquidity of stocks relative to bonds and so the demand for bonds decreases d. interest rates will fall because the expected increase in stock prices raises the liquidity of stocks relative to bonds and so the demand for bonds decreases?

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What will happen to interest rates if the public suddenly expects a large increase in stock prices?...