Question: Mario has just started working as a securities analyst with a large brokerage company. He has a good understanding of the market and prefers to

Mario has just started working as a securities analyst with a large brokerage company. He has a good understanding of the market and prefers to use the fundamentals of the economy and busin activity when determining a stock's value. What statement is FALSE?

a) An increase in the overnight rate can lead to reduced company profitability because interes payments on outstanding debts will increase.

b) An increase in taxes generally leads to falling stock prices.

c) An increase in inflation has the effect of reducing the real rate of return on an investment

d) A period of rising inflation has a positive impact on stock prices.

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