Suppose the Index of Leading Economic Indicators Begins to Decline

question 114

Multiple Choice

Suppose the index of leading economic indicators begins to decline for several months. Which of the following economic events will likely follow?

• A)A recession.
• B)Severe inflation.
• C)Greater employment.
• D)Higher investment.

---

Definitions:

Operating Activities

Activities that relate directly to the operation of a company, including production, sales, and day-to-day business functions.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered but not yet paid for.

Statement of Cash Flows

A financial report summarizing the total cash inflows and outflows experienced by a company.

Operating Activities

The day-to-day actions that businesses undertake to generate earnings, such as selling products or services.