At the Initial Stage of an Economic Recovery

question 37

Multiple Choice

At the initial stage of an economic recovery,

• A) Financial stocks rise on expectations of increases in loan demand, housing constructions and security offerings.
• B) Consumer durable stocks rise on expectations of rising consumer confidence and personal income.
• C) Capital goods stocks rise on expectation of increases in business capital spending.
• D) Basic materials stocks rise on expectation of rising profit margins.
• E) Consumer staple stocks rise on expectations that consumers will continue to spend on necessities.