Which of the Following Statements About the Index of Leading

question 151

Multiple Choice

Which of the following statements about the index of leading economic indicators is the most accurate?

• A)It provides accurate information on the duration of downturns in the economy.
• B)It provides accurate information on the depth of downturns in the economy.
• C)It can result in a self-fulfilling prophecy if business firms respond to leading economic indicator predictions.
• D)It virtually always predicts downturns in the economy with a lead-time of six months.