Economic trends affect customers' purchasing decisions and how firm's allocate their resources.

Question

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Economic trends such as changes in inflation rates, interest rates, and levels of consumer spending can directly impact consumers' buying behavior and the strategies businesses use to manage their resources. For example, during a recession, consumers may be more price-sensitive and focus on buying essential items, while firms may cut back on investments and expenses to conserve resources.

Economic Trends Affect Customers' Purchasing Decisions and How Firm's Allocate