Which one of the following statements is correct?
A) Stock prices are independent of the economic cycle.
B) Stock prices change simultaneously with the economy.
C) Stock prices are often used to predict changes in the economy.
D) Changes in stock prices generally lag changes in the economy.

Question

Quizplus · Accepted Answer

Stock prices are often used as a leading indicator to predict changes in the economy, as they reflect investor expectations about future economic conditions.

Which One of the Following Statements Is Correct