Assume the markets are in equilibrium before the following changes occur Unexpected inflation occurs causing the required rate of return on equity, R, to increase. The economy is expected to slow causing a decrease in the growth rates of dividends. If everything else is held constant and using the Dividend Constant Growth Model, what is the expected change in stock prices? Stock prices will stay the same since both changes will offset each other. Stock prices will increase. Stock prices will decrease. Stock prices will increase by the inflation rate. Both statements b and d are correct