A poor economic performance and forecast is likely to lead to greater levels of risk for companies because of
A) labor unrest and shortage of natural resources
B) higher inflation and higher unemployment
C) higher taxes and increased spending by federal, state, and local governments
D) a surplus of merchandise and reduced spending power of consumers

Question

Quizplus · Accepted Answer

Higher inflation and higher unemployment are direct consequences of poor economic performance, leading to increased risk for companies as they face rising costs and reduced consumer spending.

A Poor Economic Performance and Forecast Is Likely to Lead