Purchases of consumer durable goods tend to decline by relatively large amounts during a recession because
A) buyers can usually postpone purchases of these goods
B) buyers can substitute nondurable goods for durable goods
C) the prices of durable goods decline substantially during a recession
D) the incomes of households decrease modestly during a recession

Question

Quizplus · Accepted Answer

Buyers often have the option to delay the purchase of durable goods, such as cars and appliances, during economic downturns, as these items are not immediately necessary and can be used for a longer period before needing replacement.

Purchases of Consumer Durable Goods Tend to Decline by Relatively