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a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.

b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.

c. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.

d. Expectations about the business cycle have no impact on stock prices.

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