What strategy regarding long- versus short-term financing is not being followed if managers resort to short-term investing during downturns in the business cycle?

Question

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When managers resort to short-term financing during downturns, they are following a restrictive strategy which prioritizes immediate needs over long-term planning. This strategy can be risky as short-term financing may have higher interest rates and may need to be refinanced frequently, leading to instability and potentially higher costs in the long run. A middle-of-the-road strategy would consider both short-term and long-term financing options, balancing the benefits and risks of each. A relaxed strategy would prioritize long-term financing and may overlook the potential benefits of short-term financing during periods of financial stress.

What Strategy Regarding Long- Versus Short-Term Financing Is Not Being