Question: All else equal, a reduction in expected future interest rates should lead to an upturn in the stock market, as estimate of future cash flows
All else equal, a reduction in expected future interest rates should lead to
| an upturn in the stock market, as estimate of future cash flows are revised upward | ||
| an upturn in the stock market, as future cash flows are discounted at lower rates | ||
| a downturn in the stock market, as estimates of future cash flows are revised downward | ||
| a downturn in the stock market, as future cash flows are discounted at higher rates | ||
| a downturn in the stock market, as future cash flows are discounted at a lower rates |
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