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

Question

Quizplus · Accepted Answer

During a recession, many firms experience reduced profits which reduces their cash flow and investment spending. This is because consumers are making fewer purchases, leading to reduced revenue for companies. As a result, these companies are unable to invest in new projects or equipment, which may lead to further economic downturn.

During A(n)________ Many Firms Experience Reduced Profits,which Reduces ________ and Investment

During A(n) Many Firms Experience Reduced Profits,which Reduces and Investment