During recessions:
A)precautionary savings rise.
B)bequests rise.
C)credit card bills fall.
D)anticipated future income increases.

Question

Quizplus · Accepted Answer

During recessions, individuals tend to save more money as a precautionary measure in case of future economic difficulties or job loss. This leads to a rise in precautionary savings. Bequests may increase as well, but this is not as directly related to recessions as precautionary savings. Credit card bills may fall, but this is likely due to decreased spending rather than an increase in creditworthiness. Anticipated future income is unlikely to increase during a recession.

During Recessions