CFA Level I Understanding Business Cycles question

Understanding Business Cycles sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Economics

Understanding Business Cycles

Economist Amara Okafor observes the following late in a recession: final sales have stabilized and begun rising modestly, business inventories are still falling, the aggregate inventory-to-sales ratio has dropped below its long-run average, and corporate credit spreads have begun to narrow. Okafor's most appropriate near-term inference is that: