When current economic conditions are bad, people are ____________ inclined to save, and when they predict bad future economic conditions they are ____________ inclined to save now.
A) less; more
B) less; less
C) more; more
D) more; less

Question

Quizplus · Accepted Answer

When the current economic conditions are bad, people tend to save more as they try to prepare for potential financial difficulties that may arise in the future. Similarly, when they predict bad economic conditions in the future, they are more inclined to save now as a means of preparing for those potential difficulties. Therefore, both scenarios lead to an increase in the propensity to save, indicating that people are less inclined to spend money in such conditions.

When Current Economic Conditions Are Bad, People Are ____________ Inclined