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.

---

Definitions:

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.

Day

A day is a unit of time equivalent to 24 hours or the period it takes for the Earth to complete one full rotation on its axis.