Asked by Franco Volschenk on Jun 29, 2024

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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.
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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.