Answered

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During recessions, which type of spending falls?

A. Consumption and investment
B. Investment but not consumption
C. Neither consumption nor investment
D. Consumption but not investment

Sagot :

GinnyAnsweridn

Final answer:

During recessions, consumption and investment spending generally decrease due to economic uncertainties.


Explanation:

During recessions, consumption typically falls due to households cutting back on spending as a result of economic uncertainty. Investment spending also tends to decrease significantly during recessions as firms become more hesitant to invest in new projects or expansions.

One important exception is new residential construction, which is considered investment when purchased by households.


Learn more about consumption and investment spending during recessions here:

https://brainly.com/question/28315342


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