I am not sure what to think.
it says As the economic expansion Approaches its peak. (which to me is it hasn’t reached peak yet just about there)
so i wouldn’t think that inventory-to-sales ratio is increasing yet… i would think its still increasing and in a month or two when it reaches peak, the ratio will start increasing…
What are others thinking about this?
As an economic expansion approaches its peak, the economy is most likely to show: A. a decrease in inventory levels. B. accelerating sales growth. C. an increase in the inventory-to-sales ratio. As the economy approaches its peak, sales growth begins to slow, unsold inventories begin to accumulate, and the inventory-to-sales ratio increases. Answer: C