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To a first approximation, one can think of the stock market as a perpetuity with a roughly constant dividend payment. If the Federal Reserve increases
To a first approximation, one can think of the stock market as a perpetuity with a roughly constant dividend payment. If the Federal Reserve increases interest rates at the next FOMC meeting on March 16 2022, what will happen to the value of the stock market? Question 1 options:
a. It will go up.
b. It will go down.
c. Interest rates have no bearing on the stock market.
d. It depends on what investors expected the Federal Reserve to do.
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