Recession come at
A)regular intervals.During recessions consumption spending falls relatively more than investment spending.
B)regular intervals.During recessions investment spending falls relatively more than consumption spending.
C)irregular intervals.During recessions consumption spending falls relatively more than investment spending.
D)irregular intervals.During recessions investment spending falls relatively more than consumption spending.

Question

Quizplus · Accepted Answer

Recession occurs at irregular intervals. During recessions, investment spending falls relatively more than consumption spending. When there is a recession, people tend to cut their spending on non-essential items such as vacations, restaurants, and entertainment. As a result, consumption spending falls. On the other hand, investment spending falls relatively more as firms tend to cut back on capital expenditures during a recession due to the uncertain economic environment.

Recession Come at