What Does a General, Persistent Decline in Stock Prices Signal

question 149

Multiple Choice

What does a general, persistent decline in stock prices signal about an economy?

• A) that the economy is about to enter a boom period because people will be able to buy stock for less money
• B) that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits
• C) that the economy is about to enter a boom because people expect prices of stock to rise
• D) that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past

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Definitions:

Plantation Owners

Individuals who owned large agricultural estates typically in the Americas, often worked by enslaved people, especially in the context of crops like tobacco and cotton.

Southern Territories

Geographic regions located in the southern part of a country or continent, which may have distinct cultural, political, or historical significance.

James Tallmadge

A U.S. politician known for proposing an amendment to limit the spread of slavery in Missouri during its admission to the Union.