Toward the End of a Recession

question 4

Multiple Choice

Toward the end of a recession,

• A) financial stock rise on expectations of increases in loan demand, housing constructions and security offerings.
• B) consumer durable stocks rise on expectations of rising consumer confidence and personal income.
• C) capital goods stocks rise on expectation of increases in business capital spending.
• D) basic materials stocks rise on expectation of rising profit margins.
• E) consumer staple stocks rise on expectations that consumers will continue to spend on necessities.

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Definitions:

System-1

A term from cognitive psychology, referring to the fast, automatic, and often unconscious way of thinking.

Emotion

A complex psychological state that involves an individual's subjective experience, physiological response, and behavioral expression.

Reason

Those sentences in the argument that are used to show that the conclusion is true or that it is probably true.