Topic

The Dread of Recession

Instructions

Read the “Making the Connection” short case titled “What’s So Bad about Falling
Prices?” in Chapter 20 of our textbook, and also be sure to watch the video right under
the Making the Connection title (maybe a few times). Then post your first posting this
week beginning to discuss what you’ve read and watched in the video.
• Then work on Problems and Applications 7.9, at the end of Chapter 20, answering and
discussing the questions in that exercise.

Answer Preview

Recessions are considered a time that risk in making investment is normally high for organization seeking to expand their operations. It is normal for many origination sot adopt cost cutting measure during recession as they seek to protect themselves form the adverse effects of the economic conditions. The few firms who make investments during such periods take a significant risk.

Word Count: 400