At the Initial Stage of an Economic Recovery

question 60

Multiple Choice

At the initial stage of an economic recovery,

• 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:

Peripheral Route

A method of persuasion that relies on superficial cues or associative reasoning, rather than systematic thinking about the content of a message.

Central Route

A method of persuasion that involves deeply processing the content of a message, considering its arguments and evidence.

Primacy Effect

The tendency to remember information presented at the beginning of a list or sequence more efficiently than information presented later.

Information

Data or knowledge communicated or received about a particular fact or circumstance; information can be obtained from various sources and is essential for decision-making.