a. Newspapers will do best in an expansion when advertising volume is increasing.

b. Machine tools are a good investment at the trough of a recession, just as the economy is about to enter an expansion and firms may need to increase capacity.

c. Beverages are defensive investments, with demand that is relatively insensitive to the business cycle. Therefore, they are relatively attractive investments if a recession is forecast.

d. Timber is a good investment at a peak period, when natural resource prices are high and the economy is operating at full capacity.