Which of the following best explains what happens when consumers think the economy is struggling?

a. people spend more, businesses produce less, and unemployment rises.

b. people spend more, businesses produce a lot, and unemployment is low.

c. people spend less, businesses produce too much, and unemployment is low.

d. people spend less, businesses produce less, and unemployment rises.

D. People spend less, businesses produce less, and unemployment rises.

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Option D. The following statement best explains what happens when consumers think the economy is struggling:

When consumers think the economy is struggling, people spend less, businesses produce less, and unemployment rises.

Explanation:

Consumer behavior is not only studied for marketing and production purposes, but it can also be linked to the economy of a country or society. In microeconomics, the reasons as to why consumers decide to buy or not to buy different products play a key role. If the general perception of a society is that the economy is or will soon start to struggle, consumer activity will be affected, as people will choose to spend less as a precautionary measure, making businesses to produce less as a result of a decrease of the demand, with the last consequence being a rise of the unemployment level due to the decrease of the demand in the production sector.

answer; buying the bill at a discount from the face value to be received at maturity;

answerindividual preferences are not revealed in the market for the good;