What is generally true of consumers in a recession?
A) Everyone suffers and cuts back on spending.
B) The rich suffer as the poor cut back on spending.
C) Many reallocate spending and buy less on credit cards.
D) Everyone cuts back on spending, but only the low-income consumer segments suffer.

Question

Quizplus · Accepted Answer

During a recession, consumers often adjust their spending habits, including reallocating their budgets to prioritize essential goods and services over luxury items, and reducing reliance on credit cards to avoid accruing debt.

What Is Generally True of Consumers in a Recession