During a recessionary period which of the following is expected?

Question

Quizplus · Accepted Answer

During a recession, people tend to be more cautious with their spending and therefore are less likely to use credit.

Answer: C
 During a recession, the government may increase taxes at a national level to help balance the budget, while local governments may decrease taxes to encourage spending and stimulate the economy.

Note: B, D, and E are all unlikely during a recession. Consumer spending tends to decrease during a recession, property values tend to decrease, and consumers tend to cut back on discretionary spending such as entertainment.

During a Recessionary Period Which of the Following Is Expected