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Q: How can you use information about the business cycle when making a decision about a large purchase?
A: Business cycles impact a number of things. business cycles mean low interest rates, and large capital purchases are usually financed. So that reduces the amount of investment you make. [ On the other hand, you have lower demand for your products, so you get less return on your investment, and the ROI ends up no better than in a up business cycle, despite the low rates. (its called equilibrium).
source: yahoo ]
Expert answered|sharpies|Points 6086|
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Asked 1/2/2012 8:57:13 PM
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