Which of the following could cause a recession?
A) An increase in consumption
B) An increase in saving
C) An increase in investment
D) An increase in government purchases
E) An increase in exports

Question

Quizplus · Accepted Answer

An increase in saving reduces consumption spending, which can lead to a decrease in aggregate demand, potentially causing a recession. The other options - an increase in consumption, investment, government purchases, or exports - would all lead to an increase in aggregate demand, making a recession less likely.

Which of the Following Could Cause a Recession