Which of the following is likely to occur during economic downturns?
A) People tend to spend more on luxury goods.
B) Consumption of necessary goods decline.
C) Long-term credit is available at concessional rates of interest.
D) The purchasing power of the population declines.
E) The level of investment in the economy rises.

Question

Quizplus · Accepted Answer

During economic downturns, people tend to have less disposable income, which leads to a decrease in their purchasing power. This, in turn, results in a decline in overall consumption and economic activity.

Which of the Following Is Likely to Occur During Economic