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During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in consumer spending. Which of the following factors caused this decrease in consumer sentiment?a. an increase in tax rates
b. a decrease in expected income
c. a decrease in the money supply
d. an increase in household wealth
e. falling gasoline prices

Respuesta :

OlanmaE

The Great Recession occurred in America between 2007 to 2009. During this period, consumer sentiment in the United States declined, leading to a decrease in consumer spending and this was caused by;

  • c. A decrease in the money supply

During the Great Recession that hit America and many other countries of the world, there was a decline in consumer confidence that made people reduce spending.

Thus, there was no free flow of money in the economy and businesses suffered for this. This recession occurred as a result of the failure of the U.S Housing bubble.

Banks were affected and businesses had to lay off their workers causing an increase in unemployment.

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https://brainly.com/question/23174053

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