As the economy nears the end of a recession, which of the following do we typically see?

Question

Quizplus · Accepted Answer

As the economy nears the end of a recession, firms start to gain confidence in the future and invest more in capital goods, leading to increased spending. A, C, and D are all unlikely as the economy improves, as consumers tend to start spending more, interest rates may remain low to encourage borrowing and investment, and labour force participation typically increases as unemployment falls. Therefore, B is the best choice.

As the Economy Nears the End of a Recession, Which