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Please circle the best answer. 1. Which of the following is NOT considered a lea

ID: 2779740 • Letter: P

Question

Please circle the best answer. 1. Which of the following is NOT considered a leading economic indicator? A. stock prices B. M2 money supply C. industrial production D. interest rate spread E. consumer expectations index 2. Which one of the following is defined as the market value of goods and services pro over a period of time A. Domestic Market Product (DMP) B. Gross Domestic Product (GDP) C. Gross Economic Activity (GEA) D. Gross Market Value (GMV) E. Market Value Product (MVP) 3. Which of the following reflects the value of economic output adjusted to remove the effects of inflation? A. current year GDP B. real GDP C. nominal GDP D. adjusted GDP E. actual GDP If the number of Euros required to buy S1 (USD) increases then the Euro has the U.S. dollar 4. ven A. depreciated B. appreciated C. declined D. improved E. increased

Explanation / Answer

1. The correct answer is option A -stock prices

Leading economic indicators signal future events.

Although stock prices are crucial to investors, they aren't generally regarded as economic indicators per se.This is because they don't look very far into the future - a few weeks or months at most.

Leading economic indicators can give investors a sense of where the economy is headed in the future, paving the way for an investment strategy that will fit future market conditions. Stock prices per se does not this information.

2. Option B- Gross Domestic Product (GDP)

3. Option B- Real GDP

4. Option A- Depreciated.