What is generally true of consumers in a recession?
A) Everyone suffers and cuts back on spending.
B) Rhe rich suffer as the poor cut back on spending.
C) Many reallocate spending and buy less on credit cards.
D) Everyone cuts back on spending, but only the low-income consumer segments suffer.

Question

Quizplus · Accepted Answer

Many consumers tend to reallocate their spending during a recession and become more cautious with their finances. They may buy fewer luxury items or use credit cards less frequently to avoid accumulating debt. This behavior is not limited to any specific income segment of consumers.

What Is Generally True of Consumers in a Recession