The Federal Reserve revises an inflation forecast that results in lower prices (and, hence, higher...
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Accounting
The Federal Reserve revises an inflation forecast that results in lower prices (and, hence, higher returns) for treasury securities. All else constant, the direct effect on stock prices will be a tendency to:
Group of answer choices
- Rise because of lower anticipated growth.
- Rise because of anticipated future inflation.
- Increase because of higher demanded compensation for risk.
- Fall because of an increase in required returns.
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