If monetary policy becomes more transparent about the future course of interest rates, how would that affect stock prices, if at all? A. Stock prices will increase, as the risk and required return on the investment will be reduced. B. Stock prices will remain unchanged, as increased transparency will not affect investment decisions. C. Stock prices will decrease because investors are now aware of stock prices and won't overpay. D. Stock prices will be unaffected, as stock prices and transparent monetary policy are unrelated.
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