During periods when investors suddenly become fearful that stocks are overvalued, they dump their stocks, and the

Question:

During periods when investors suddenly become fearful that are overvalued, they dump their and the stock market experiences a major decline. During these periods, interest rates also tend to decline. Use the loanable funds framework discussed in this chapter to explain how the massive selling of leads to lower interest rates.
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...