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Romashka-Z-Leto [24]
3 years ago
5

Suppose all firms follow similar financing policies, face similar risks, have equal access to capital, and operate in competitiv

e product and capital markets. However, firms face different operating conditions because, for example, the grocery store industry is different from the airline industry. Under these conditions, firms with high profit margins will tend to have high asset turnover ratios, and firms with low profit margins will tend to have low turnover ratios.
a. True

b. False
Business
2 answers:
sleet_krkn [62]3 years ago
6 0
The answer is false!
inna [77]3 years ago
6 0
I am just answering for points
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The available options

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Answer:

A

Explanation:

For a given situation in the question above the correct answer is Option A, which is: The​ self-correcting mechanism stops working because the falling inflation produced by a negative output gap produces higher rather than lower real interest rates when the policy rate hits the zero lower​ bound, and this increase depresses planned spending and further widens the output gap.

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