Impact of stock market crises during periods when investors, Ask an Expert

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Impact of Stock Market Crises :

During periods when investors suddenly become fearful that stocks are overvalued, they dump their stocks and the stock market experiences a major decline. During these periods, interest rates also tend to decline.

Use the loanable funds framework to explain how the massive selling of stocks leads to lower interest rates.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91981707

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