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Which of the following is not a variable in the index of leading indicators?
- a)New consumer goods order
- b)Delayed deliveries
- c)New building permits
- d)Prime rate
Correct answer is option 'D'. Can you explain this answer?
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Which of the following is not a variable in the index of leading indic...
Explanation:
The index of leading indicators is a statistical tool used by economists to predict future economic trends. It is a composite index that consists of several variables that are believed to be predictors of future economic activity. These variables include:
a) New consumer goods orders: This variable measures the number of new orders for consumer goods. An increase in new orders is seen as an indicator of future economic growth.
b) Delayed deliveries: This variable measures the number of delayed deliveries of goods. An increase in delayed deliveries is seen as an indicator of future economic growth because it suggests that demand for goods is high.
c) New building permits: This variable measures the number of new building permits issued. An increase in new building permits is seen as an indicator of future economic growth because it suggests that the construction industry is expanding.
d) Prime rate: This variable is not a variable in the index of leading indicators. The prime rate is the interest rate that commercial banks charge their most creditworthy customers. It is not considered a predictor of future economic activity.
In conclusion, the correct answer is option 'D' because the prime rate is not a variable in the index of leading indicators.
The index of leading indicators is a statistical tool used by economists to predict future economic trends. It is a composite index that consists of several variables that are believed to be predictors of future economic activity. These variables include:
a) New consumer goods orders: This variable measures the number of new orders for consumer goods. An increase in new orders is seen as an indicator of future economic growth.
b) Delayed deliveries: This variable measures the number of delayed deliveries of goods. An increase in delayed deliveries is seen as an indicator of future economic growth because it suggests that demand for goods is high.
c) New building permits: This variable measures the number of new building permits issued. An increase in new building permits is seen as an indicator of future economic growth because it suggests that the construction industry is expanding.
d) Prime rate: This variable is not a variable in the index of leading indicators. The prime rate is the interest rate that commercial banks charge their most creditworthy customers. It is not considered a predictor of future economic activity.
In conclusion, the correct answer is option 'D' because the prime rate is not a variable in the index of leading indicators.
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Which of the following is not a variable in the index of leading indicators?a)New consumer goods orderb)Delayed deliveriesc)New building permitsd)Prime rateCorrect answer is option 'D'. Can you explain this answer?
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Which of the following is not a variable in the index of leading indicators?a)New consumer goods orderb)Delayed deliveriesc)New building permitsd)Prime rateCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following is not a variable in the index of leading indicators?a)New consumer goods orderb)Delayed deliveriesc)New building permitsd)Prime rateCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a variable in the index of leading indicators?a)New consumer goods orderb)Delayed deliveriesc)New building permitsd)Prime rateCorrect answer is option 'D'. Can you explain this answer?.
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