Collateral damage occurs more frequently during:
A) expansions when real assets need to be redeployed.
B) recessions when discouraged workers neglect the capital stock.
C) expansions when capital stock becomes outdated and useless.
D) recessions when capital stock loses value through market forces.

Question

Quizplus · Accepted Answer

During recessions, companies may have to cut back on investments in their capital stock, leading to a decrease in the value of these assets. This can result in collateral damage, such as job losses and decreased economic growth, as other businesses and individuals who rely on these assets are negatively affected.

Collateral Damage Occurs More Frequently During