Do you agree or disagree? Why or why not?

Factors related to the economy, such as inflation, interest rates, and market conditions, can influence the needs of working capital. The rising prices during inflation may escalate input costs, and fluctuations in interest rates can have an impact on the expenses associated with borrowing.

In the $2010-2014$ economy, where growth was slow and interest rates were very low, some aspects of working capital management became less crucial for companies. This is because lower interest rates meant borrowing was cheaper, and with stable demand, firms felt less pressure to optimize working capital. Still, basic working capital practices remained important for smooth operations and managing risks.

After $2020,$ the U$.$S$.$ experienced a faster$-$growing economy with high inflation and rising interest rates. Now, efficient working capital management has become more critical for companies. With higher interest rates, minimizing financing costs became a priority. Challenges like strained supply chains and the need for flexible cash flow highlighted that working capital management continued to be important in this changing economic environment. Businesses had to adapt their strategies to deal with uncertainties and make the most of opportunities.