Businesses whose fortunes are closely linked to the rate of economic growth called ........

Economics- Phase (I & II) Business Cycles

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Businesses whose fortunes are closely linked to the rate of economic growth called ____

Cyclical business

Capital good business

Both ‘a’ and ‘b’

None of the above

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Explanation:

In the investing world, cyclical stocks are those whose fortunes swing as per the business cycle of an economy. A cyclical stock typically moves up or down depending on the upward or downward movement in the economy. These stocks are usually traded heavily as investors try to buy them at the low point of a business cycle and sell at the high point of the same cycle.