Which of the Following Is Not a Commonly Cited Problem

Multiple Choice

Which of the following is not a commonly cited problem with the Index of Leading Economic Indicators?

A) On several occasions the index has given false signals, predicting a recession when none occurred.
B) By relying too heavily on financial variables, the index becomes overly sensitive to sudden changes in financial markets.
C) The index provides little information on the severity of the upcoming recession.
D) As the economy changes over time, the ability of macroeconomic variables to predict changes in the economy will improve for some, grow worse for others.