Persistence Is

question 49

Multiple Choice

Persistence is

• A)the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth.
• B)the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies.
• C)the tendency of many economic variables to move together in a predictable way over the business cycle.
• D)the idea that peaks and troughs of the business cycle occur at regular intervals.

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Definitions:

Fundamental Analysis

An investment analysis approach that evaluates a security's intrinsic value by examining related economic and financial factors.

Intrinsic Value

The actual value of a company or an asset based on underlying perceptions of its true value including all aspects of the business.

Two-Stage Growth

A model for valuing a company by assuming two different rates of growth: an initial high-growth period followed by a lower, stable growth period.

Major Downturn

A significant decline in economic activity across markets or industries, often characterized by falling GDP, employment, and consumer spending.