During a Recessionary Period,which of the Following Is Expected

question 215

Multiple Choice

During a recessionary period,which of the following is expected?

• A) The use of credit would decline.
• B) Consumer spending would increase.
• C) Taxes would increase nationally.
• D) Property values would jump dramatically.
• E) Consumers would use the majority of their discretionary income on entertainment.

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Definitions:

Profitability

measures how much profit or financial gain is generated as a percentage of the revenue of a company or business segment.

Liquidity

The simplicity of transforming an asset into cash without influencing its market value.

Statement of Cash Flows

A financial report that shows how changes in the balance sheet and income affect cash and cash equivalents, and breaks down financing, investing, and operating activities.

Stock Split

An increase in the number of shares of a company's stock without changing the shareholders' equity, typically done to lower the trading price of the stock.