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The Boom and Bust Nature of Business Cycles

Question 14

Multiple Choice

The boom and bust nature of business cycles:


A) often leads to cyclical funding cuts and spurts in R&D.
B) encourages most businesses to conserve cash during good times so that they can continue to invest when times are tough.
C) is not as common in markets for high-tech products as it is in markets for low-tech products.
D) is not as common in markets for low-tech products as it is in markets for high-tech products.
E) has less impact on businesses with a strong climate.

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