Recessionary phases in the business cycle typically cause greater hardship on companies that borrow large amounts.

Name: Recessionary phases in the business cycle typically cause greater hardship on companies that borrow large amounts.
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Question

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During recessions, credit becomes tighter and interest rates increase, making it more difficult for companies with high levels of debt to repay their loans and maintain liquidity. This can lead to bankruptcy or other financial difficulties.

Recessionary Phases in the Business Cycle Typically Cause Greater Hardship