During a(n)________ many firms experience reduced profits, which reduces ________ and investment spending.
A)expansion; business confidence
B)recession; cash flow
C)expansion; cash flow
D)recession; inventories

Question

Quizplus · Accepted Answer

During a recession, many firms experience reduced profits which leads to reduced cash flow and investment spending. This can cause a vicious cycle where reduced investment spending leads to reduced economic growth further exacerbating the recession.

During A(n)________ Many Firms Experience Reduced Profits, Which Reduces ________

During A(n) Many Firms Experience Reduced Profits, Which Reduces