Central bank implements monetary contraction

Reference no: EM13690342

Assume that the central bank implements monetary contraction that is not fully anticipated by financial markets. This partially unexpected monetary contraction will cause which of the following to occur?

Select one:

a. an ambiguous effect on stock prices

b. stock prices fall initially followed by increases

c. stock prices to remain unchanged

d. stock prices to rise

e. stock prises to fall

Reference no: EM13690342

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