As inflation increases, households become ________ uncertain leading to ________ spending.
A)more; more
B)more; less
C)less; more
D)less; less

Question

Quizplus · Accepted Answer

When inflation is high, people become less certain about what things will cost in the future, and uncertainty makes planning more difficult. In an uncertain economic environment, both households and firms may become more cautious, reducing their spending as a result.

As Inflation Increases, Households Become ________ Uncertain Leading to ________

As Inflation Increases, Households Become Uncertain Leading to