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Determine what is required to complete the following enthymeme.
Investors become panicky whenever interest rates rise, and interest rates are rising now.
Select one:
a. Conclusion: Investors are becoming panicky now.
b. Premise: Rising interest rates usually result in declining stock prices.
Oc. Premise: Investors often become panicky for irrational reasons.
O d. Conclusion: Panicky investors often withdraw their funds from the stock market.
e. Conclusion: Higher interest rates are always followed by lower interest rates.

Sagot :

The answer is A. Investors are becoming panicking now.

Interest rates movement regulates the economy.

A country may experience economic ups and downs because of movement in their interest rates.

Cost of Borrowing movement

These interest rates movements causes a fall in low coupon bonds and stock prices, this is because cost of borrowing becomes more expensive.

When interest rates rise investors become panicky because interest rate usually result in declining stock prices.

If interest rates are rising now, the investors are becoming panicky now.

The correct answer is a.

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