ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -That said, most consumers across the four countries we researched believe that we are in a recession-and say that they are spending more and saving less.

Detailed explanation-2: -During recessions, of course, consumers set stricter priorities and reduce their spending. As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments.

Detailed explanation-3: -In a recession, people tend to borrow less and save more. People are nervous about the prospect of unemployment, so the propensity to consume falls. An example of the decrease in borrowing and a rise in savings can be seen by the graph for housing equity withdrawal.

Detailed explanation-4: -Economic recessions can be caused by many different elements, including loss of consumer confidence, high interest rates, a stock market crash, and asset bubbles bursting. Most events that will cause the economy to slow down can also lead to a recession if left unchecked.