Following a recession businesses are likely to be ________ and thus ________ the user cost of capital.

Name: Following a recession businesses are likely to be ________ and thus ________ the user cost of capital.
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Following a recession, businesses tend to be pessimistic about future economic conditions. This pessimism can lead them to overestimate the user cost of capital, as they might expect higher interest rates or lower returns on investment than might actually occur.

Following a Recession Businesses Are Likely to Be ________ and Thus