During a recession,people and business are likely to engage in ____________; meaning that their use of credit will decrease.
A)leveraging.
B)deleveraging.
C)compounding.
D)tax-sheltering.

Question

Quizplus · Accepted Answer

During a recession, people and businesses are likely to engage in deleveraging in order to reduce their debt levels and minimize financial risk. This means that they will use less credit and potentially pay off existing debts. Leveraging, on the other hand, refers to the practice of using borrowed funds to invest or grow a business, which is less common during a recession. Compounding and tax-sheltering are not directly related to the use of credit.

During a Recession,people and Business Are Likely to Engage in ____________;