Question

48. Historically, P/E ratios have tended to be:
(A) higher when inflation has been high
(B) lower when inflation has been high
(C) uncorrelated with inflation rates but correlated with other macroeconomic variables
(D) uncorrelated with any macroeconomic variables including inflation rates​

Answer 1

Answer:

Explanation:  lower when inflation has been high.

Answer 2

Answer:

option (B) lower when inflation has been high

correct answer