If individuals believe their income will decrease in the near future, they may _____________ their spending.

Question

Quizplus · Accepted Answer

If individuals believe their income will decrease in the near future, they are likely to curtail their spending. Curtailing spending means cutting back or reducing spending, which is a natural response to an anticipated decline in income. Eliminating spending or doubling spending would not make sense in this situation, and increasing spending when anticipating a decrease in income would be risky and potentially unsustainable.

If Individuals Believe Their Income Will Decrease in the near Future