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

Question

Quizplus · Accepted Answer

During an expansion, firms experience increased profits due to increased demand for goods and services, which in turn increases their cash flow. This leads to more investment spending as firms have more funds available to invest in expanding their business operations.

During A(n)________ Many Firms Experience Increased Profits,which Increases ________ and Investment

During A(n) Many Firms Experience Increased Profits,which Increases and Investment