Saving rates tend to rise during ________ and fall during ________.
A) boom times; expansions
B) recessions; expansions
C) boom times; recessions
D) recessions; contractions

Question

Quizplus · Accepted Answer

During recessions, individuals and businesses are more likely to save as a precaution against economic uncertainty, whereas during expansions, confidence is higher, leading to increased spending and lower saving rates.

Saving Rates Tend to Rise During ________ and Fall During