Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A)A general,persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.
• B)A general,persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
• C)A general,persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.
• D)Expectations about the business cycle have no impact on stock prices.

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Definitions:

Compound Sentence

A sentence that contains at least two independent clauses joined by a conjunction or punctuation.

Simple Sentences

Sentences that contain only one independent clause and express a complete thought.

Complex Sentences

Sentences that contain one independent clause and at least one dependent clause, often used to convey detailed information.

Key Pieces

Essential or most important parts of something that are crucial for understanding or completing it.