If a diffusion index for new orders went from 87 to 74 and then to 68, it would indicate ____ receipt of new orders and indicate a ____ in breadth and the possibility of a future ____ in the series.
A) limited, strengthening, decline
B) limited, weakening, increase
C) widespread, strengthening, increase
D) widespread, weakening, decline
E) widespread, weakening, increase

Question

Quizplus · Accepted Answer

A decrease in the diffusion index from 87 to 68 indicates a widespread weakening in the receipt of new orders. The decline in the breadth of the index (from 87 to 74 to 68) suggests that the weakness in new orders is becoming more widespread. This could signal a possible future decline in the series of new orders.

If a Diffusion Index for New Orders Went from 87