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    If Interest Rates Rise Due to Inflation, and Expected Cash
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If Interest Rates Rise Due to Inflation, and Expected Cash

Question 114

Question 114

Multiple Choice

If interest rates rise due to inflation, and expected cash flows to a firm rise, then you would expect stock prices to


A) rise.
B) rise and then decline.
C) rise and then decline
D) decline.
E) decline and then rise.

Correct Answer:

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