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The Relationship Between the Stock Market and the Business Cycle

Question 21

Multiple Choice

The relationship between the stock market and the business cycle is generally considered reliable, but the stock market tends to give false signals about:


A) business cycle peaks (booms) .
B) business cycle troughs (recessions) .
C) business cycle inflection points between peaks and troughs.
D) ex post stock market returns.

Correct Answer:

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