In Which of the business cycle do firms try to cut stocks in order to save costs ?
Correct answer: D. The recession
- A. The upturn
- B. The peeking out
- C. The expansion
- D. The recession
Explanation
During a recession, firms face weak sales and try to reduce inventories or stocks to avoid storage and financing costs. Expansion and upturn phases generally involve rebuilding stocks to meet rising demand.
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