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USCPA精选习题17：Business
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The trough of a business cycle is generally characterized by:
a. Shortages of essential raw materials and rising costs.
b. Increasing purchasing power and increasing capital investments.
c. Declining purchasing power and unused productive capacity.
d. Unused productive capacity and an unwillingness to risk investments.
【正确答案】D
【答案解析】
Choice "d" is correct. The trough of a business cycle is an economic low point with no positive indicators for the future. It is characterized by unused productive capacity and an unwillingness to risk new investments.
Choice "a" is incorrect. Shortages may occur during a peak.
Choice "b" is incorrect. Increasing purchasing power and increasing capital investments come with recovery.
Choice "c" is incorrect. Declining purchasing power comes with inflation; unlikely in a trough.
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