During a recessionary period,which of the following is expected?
A) The use of credit would decline.
B) Consumer spending would increase.
C) Taxes would increase nationally.
D) Property values would jump dramatically.
E) Consumers would use the majority of their discretionary income on entertainment.

Question

Quizplus · Accepted Answer

During a recession, people tend to be more cautious with their spending and may have less access to credit due to tighter lending policies of financial institutions. Therefore, the use of credit is expected to decline.

Note: Choices B, C, D, and E are not expected during a recessionary period. Consumer spending tends to decrease during a recession, taxes are generally lowered to stimulate the economy, property values usually decrease or remain stagnant, and consumers may cut back on entertainment expenses in favor of necessities.

During a Recessionary Period,which of the Following Is Expected