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; government spending
E)business cycle; government credibility

Question

Quizplus · Accepted Answer

The statement mentions reduced profits, which directly affects cash flow. The context of the statement also indicates a downturn in the economy, which matches the definition of a recession. Therefore, the correct answer is B - recession; cash flow.

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

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