During a recessionary period, which of the following economic behavior would be expected?
A)Consumer spending would increase.
B)The use of credit would decline.
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 tighten their spending and rely less on credit. They may also be more hesitant to take on additional debt.

Note: None of the other options are expected behaviors during a recession. Consumer spending typically decreases, taxes may be adjusted but are not generally increased nationally, property values typically decrease or remain stagnant, and discretionary spending on entertainment is likely to decrease as well.

During a Recessionary Period, Which of the Following Economic Behavior