Firms are most likely to experience collateral damage during a(n)_____,and their borrowing and investment activities will _____ its severity.
A) expansion;amplify
B) expansion;dampen
C) recession;amplify
D) recession;dampen

Question

Quizplus · Accepted Answer

During a recession, firms are most likely to experience collateral damage as economic activity slows down and consumer demand decreases. This can lead to reduced revenues and profits for firms, making it harder for them to repay loans and invest in new projects. Thus, their borrowing and investment activities will amplify the severity of the recession.

Firms Are Most Likely to Experience Collateral Damage During A(n)_____,and