When consumer expectations are low based on how they respond to the question,"Looking ahead,do you think that a year from now you will be better off financially,worse off or just about the same as now?" from the Index of Consumer Sentiment conducted by the Survey Research Center at the University of Michigan,economic conditions are MOST LIKELY to be __________ in the near future?
A)booming
B)recessionary
C)at full employment (i.e.unemployment is projected to be ≤ 5%)
D)hyperinflationary
E)static

Question

Quizplus · Accepted Answer

When consumer expectations are low, it suggests that consumers are less confident about the economy and their personal financial situation. This could be due to factors such as job insecurity or a weak economy. As a result, economic conditions are more likely to be recessionary in the near future.

When Consumer Expectations Are Low Based on How They Respond