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    Analysis of Investments
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    Exam 12: Macroanalysis and Microvaluation of the Stock Market
  5. Question
    If Interest Rates Increase Due to Inflation,but Expected Cash Flows
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If Interest Rates Increase Due to Inflation,but Expected Cash Flows

Question 22

Question 22

Multiple Choice

If interest rates increase due to inflation,but expected cash flows to a firm do not change,then you would expect stock prices to


A) Rise.
B) Rise and then decline.
C) Remain unchanged.
D) Decline.
E) None of the above.

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