Which of the following best describes the Canadian index of leading indicators?
A)The index heavily relies on the Toronto Stock Exchange 300.
B)The index's components are not sensitive to business cycles.
C)It provides information on the exact timing and the severity of future recessions.
D)The index is a weighted average of 10 economic variables that lead the business cycles in Canada.

Question

Quizplus · Accepted Answer

The Canadian index of leading indicators is a weighted average of 10 economic variables that predict changes in the business cycle in Canada. It is not heavily reliant on the Toronto Stock Exchange 300 and does not provide information on the exact timing and severity of future recessions.

Which of the Following Best Describes the Canadian Index of Leading