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by atom058
977 days ago
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It's due to the higher interest rates A higher risk-free rate of return from e.g. Government bonds entails higher 'required rate of return' for all other investments in the economy Suddenly, all companies need to increase their profits by 3-5 percentage points, while their costs are increasing across the board. So they need to increase sales (hard/expensive), reduce costs (might not be possible), or raise prices ('easy' to do, but customers might not accept it) |
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