Question

During a recessionary period, which of the following economic behavior would be expected? Consumer would switch from premium brands to lower-priced ones. Consumer use of credit would increase. Taxes would increase nationally. Property values would jump dramatically. Consumers would use the majority of their discretionary income on groceries.

Answer 1

Answer:

Consumer would switch from premium brands to lower-priced ones

Explanation:

On recession the income lowers.

Based on the lower income, the consumers will switch from normal goods to inferior goods. Thus, the inferior goods demand increase as the income lower's.

The taxes won't increase as, the lower income will decrease the tax collected.

The property value will decrease, not increase as there is less demand for real state.

If if this discretionary income then, it is assigned to none. It will be asigned to anything the consumer wants to.