Firms are most likely to experience collateral damage during a(n) ______ and ______ it as a consequence of their borrowing and investment activities.

Question

Quizplus · Accepted Answer

During a recession, firms are more likely to experience collateral damage as a consequence of their borrowing and investment activities. This is because economic downturns can lead to decreased demand, decreased revenues, and even bankruptcy for businesses, which can affect their ability to repay loans and make investments. Therefore, firms may further contribute to their own financial difficulties during a recession.

Firms Are Most Likely to Experience Collateral Damage During A(n)