Why is the stock market affected by predictions that the


Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?

A. Because a rise in interest rates will cause bond prices to increase.

B. Because a rise in interest rates will depress current stock prices.

C. Because a rise in interest rates will make firm pay out more dividends.

D. Because the Federal Reserve regulates the interest rate paid by stocks.

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