How do poor expectations on the part of companies affect borrowing during a recession? Companies have incentives to lay-
Posted: Sun Jul 03, 2022 1:02 pm
How do poor expectations on the part of companies affectborrowing during a recession?
Companies have incentives to lay-off workers during recessions,so borrowing increases.
Because of low interest rates, recessions are great times forcompanies to invest in new factories and capitalequipment.
Recessions mean lower sales and production, so there is littledesire for companies to borrow during these times.
Company borrowing increases because of reduced sales.
Companies have incentives to lay-off workers during recessions,so borrowing increases.
Because of low interest rates, recessions are great times forcompanies to invest in new factories and capitalequipment.
Recessions mean lower sales and production, so there is littledesire for companies to borrow during these times.
Company borrowing increases because of reduced sales.