An analysis of large declines in the stock market since the Great Depression indicates that
A) the stock market crash in October 1929 was more severe than subsequent crashes.
B) a prolonged recession will always follow a large decline in the stock market.
C) almost all stock market crashes since the Great Depression were followed by short recessions of 12 to 18 months, and in some cases, no recession at all.
D) the only way to recover from a stock market crash is through government spending, increased regulation, and tax-increases.

Question

Quizplus · Accepted Answer

Historical data shows that while some stock market crashes have led to recessions, they are often short-lived, and not all crashes result in prolonged economic downturns.

An Analysis of Large Declines in the Stock Market Since