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:

Slope

The measure of the steepness or angle of a line, representing the rate of change between two variables.

Y-Intercept

The point at which a line crosses the Y-axis on a graph, indicating the value of the dependent variable when the independent variable is zero.

Criterion Variable

The dependent variable in a statistical analysis, which is predicted or explained by other variables.

Dependent Variable

A variable in experimental research that is expected to change as a result of manipulations to the independent variable.