8
QuizMultiple Choice

Credit and Loans — Unit test

Question 8 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

When production is very high but demand is very low, it can lead to

Answer
a
a recession.
a
a recovery.
p
prosperity.
t
the peak.

Explanation

When businesses produce much more than consumers want to buy, unsold goods build up. Companies may cut production and jobs, which can lead to a recession; therefore, the correct choice is a recession.

AI-written and checked against the verified answer.

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