The answer is option 3: approval ratings tended to fall as stock prices rose.
This means that when stock prices rose, the approval ratings of George Bush's presidency decreased. This can be interpreted as an indication that people were not satisfied with the performance of the stock market during the Bush presidency. This could be because the stock market was not performing as well as expected or because the people were not satisfied with the decisions made by the Bush presidency that impacted the stock market.
Whatever the reason, the negative correlation between the stock market performance and Bush's approval ratings shows that when stock prices rose, approval ratings tended to fall.
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