An Analysis of Large Declines in the Stock Market Since

question 101

Multiple Choice

An analysis of large declines in the stock market since the Great Depression indicates that

• A) the stock market crash in October 1929 was more severe than subsequent crashes.
• B) a prolonged recession will always follow a large decline in the stock market.
• C) almost all stock market crashes since the Great Depression were followed by short recessions of 12 to 18 months, and in some cases, no recession at all.
• D) the only way to recover from a stock market crash is through government spending, increased regulation, and tax-increases.

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Definitions:

Distance

A measure of the space between two points, often used in various scientific and mathematical contexts.

Pearson Correlation Coefficient

Statistic measuring the linear relationship between two variables measured at the interval and/or ratio level of measurement.

Value

The degree of importance, worth, or usefulness of something.

Strength

In the context of data, it often refers to the magnitude or intensity of a relationship or effect among variables.