You tell your friend that the stock market does well when we have Republican presidents so you are going to vote republican in the next presidential election.Because she is such a good friend she gently points out to you that you
A)are correct only when the economy is in a recession
B)have mistakenly inferred causation from observed correlation
C)have ignored secondary effects
D)have committed the fallacy of composition
E)are correct only when the United States enjoys economic growth

Question

Quizplus · Accepted Answer

There is a correlation between the stock market and Republican presidents, but it is important to note that correlation does not always mean causation. Other factors, such as global economic conditions and policies implemented by the president, can also affect the stock market. Therefore, it is not wise to make a decision solely based on this correlation.

You Tell Your Friend That the Stock Market Does Well