During the last recession households cut back on borrowing in the wake of the financial crisis which limited credit.This decrease in borrowing would:

Group of answer choices

increase consumption during the recession but lead to more debt and a smaller increase in consumption in the expansion that follows.

decrease consumption during the recession but lead to less debt and a larger increase in consumption in the expansion that follows.

increase household disposable income and increase consumption.

decrease household disposable income and decrease consumption.