A poor economic performance and forecasts of poor economic performance are likely to lead to a greater level of risk for companies because of lower rates of inflation and lower unemployment rates.

Question

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A poor economic performance and forecast are likely to lead to greater levels of risk for companies. Of particular concern are high inflationary rates and high unemployment rates, both of which could lead to higher taxes, regulatory restrictions, an increasingly active labor movement, and even political instability.

A Poor Economic Performance and Forecasts of Poor Economic Performance