An automobile manufacturer unexpectedly announces that it has hired a new chief executive officer. It is widely believed that the presence of this individual will raise the profitability of the corporation. At the same time interest rates unexpectedly rise. Which of the above would tend to make the price of the stock rise?
a. the announcement and the rise in interest rates
b. the announcement but not the rise in interest rates
c. the rise in interest rates, but not the announcement
d. neither the announcement nor the rise in interest rates
b
Economics
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If the central bank targets interest rates, then the LM curve is
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