Two charts are shown below. The upper chart (from the Business Insider website) shows the S&P500 index level during the financial crisis. As shown on the chart the stock market started to crash in the beginning of October 2007 at the beginning of the financial crisis. But the largest drops occurred in September and October of 2008. The lower chart shows the 6-month growth rates (i.e., % change in level of indices) in the Conference Board's LEI and CEI. Use these two charts to answer the questions shown below. Markets History of the Financial Crisis: Mid-2007 to 2010 2.000 1.800 1,600 1.400 1,200 1.000 8:00 600 Dec. 12, 2007 Fedeoline first quality facility and first currency swop es with other centru bonks 20 Mar, 2008 Bear Shams enclopanc S&P 500 INDEX LEFT AXIS Fodestoblishes Primary Desier Credit Facility 07 Sept. 2008 Fannie Maand Freddie Mar conservatorship Lehman Bres bankruptcy AFS stabilisation effort Tremury quoranten money market mutual fund Jul 2008 FDIC tersn JedyMac Bank Housing and Freest Broly Ant HERA) d RECESSION DEC 2007 - JUN 2009 SOURCE BLS BEAU. MICH BUSINESS INSIDER 2008 Oct. 3, 2008 TARP Fincial stabilisation package ended. Sep, 29, 2008 The Dow folk 278 per Chart of the Day Jan 20, 2009 Prendent Obama te Feb. 2009 Financial Stability Ples announced Recovery Act signed Mar. 3, 2009 TALE program lounched to het revive credt marke Mar 23, 2009 PPP program announced to resive mortgage Simonet market Apr. 2, 2009 G-20 finance ministersuc cinded response to g perkra Foanna CAMs May 7, 2009 orge beste test ress released 2009 Jul. 21, 2010 Dodd-Frank Act signed into forw TAGP ir Gurity reduced Jun. 2009 First og Banks repay TARP And GM Choler cole restraturing and med to Esting program CONSUMER SENTIMENT ENDER RECKY A Dec. 17, 2010 Encoment of payroll Toxholiday and semporary extensions of 2008 3004, and many 2009 Sep. 27, 2010 Small Business Als Ac enored crosting dhe imail Bien Lending Fuld L end State Sesal Business Cred BHICH Oct. 3. 2010 Authority to make new edescobrmesti sandar TARP and 2010 een 1.20 110 100 30

Two charts are shown below. The upper chart (from the Business Insider website) shows the S\&PSOO index level during the financial crisis. As shown on the chart the stock market started to crash in the beginning of October 2007 at the beginning of the financial crisis. But the largest drops occurred in September and October of 2008. The lower chart shows the 6-month growth rates (i.e.\% change in level of indices) in the Conference Board's LEI and CEL. Use these two charts to answer the Source the Corference Bowed -True/False: The LEI 6-month growth rate had turned negative in the months before the largest stock market decreases associated with the financial crisis. *True/False: The CEI 6-month growth rate had turned negative in the months before the largest stock market decreases associated with the financial crisis. *Although not shown above, the S6P500 index also had significant losses in the last 3 months of 2000 and throughout 2001 following the dot com bubble. True/Faise: The LEl 6-month growth rate had turned negative in the months before much of the stock market decreases following the dot com bubble. "Assume you were a stock market imvestor in 2000 and in 2007. True/False: If you had been watching the LEl in 2000 and in 2007 you would have had information [i.e, negative LEl growth) months before the stock market crashed during which time you could have exited your stock market investments and put your money into cash. Dolne this would hawe allowed vou to avoid much of the losses observed in the last 2 recessions. False