Question

uring a recession, which of the following is true? A. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities. B. Financial stocks rise on expectations of increases in loan demand, housing constructions and security offerings. C. Consumer durable stocks rise on expectations of rising consumer confidence and personal income. D. Capital goods stocks rise on expectation of increases in business capital spending

Answer 1

Answer:

A. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities.

Explanation:

Recession refers to the contraction which occurs in the business cycle when the economic activities experience a decline. When the economy experiences a decline for at least six months, a recession occurs. During the period of recession, because of unemployment, the rate of growth decreases. The consumers stop to spend which affects the economy of the business.