State-interest rates fall-the stock market tends to rise


Problem: Suppose you hear a stock broker state that when interest rates fall, the stock market tends to rise. Create a graph to explain this particular reasoning using the following

1. What are the axis?

2. Describe the slope - positive, negative?

3. What factors would cause a movement along the graph?

4. What factors might cause a shift in the graph?

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Finance Basics: State-interest rates fall-the stock market tends to rise
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