The recession of 2008-2009 demonstrated that ________.
A)consumption is especially sensitive to changes in the retirement age
B)changes in wealth can be a major source of fluctuations in consumption
C)as consumers get older,they tend to exhaust all their savings
D)permanent income is something of a misnomer

Question

Quizplus · Accepted Answer

The recession of 2008-2009 showed that changes in wealth can have a significant impact on consumption. This was evident as people had to reduce their spending due to lower incomes and losses in investments during the recession. The other options are not related to factors observed during that time period.

The Recession of 2008-2009 Demonstrated That ________