Which term refers to the economic condition characterized by consumers saving more?

The term that refers to the economic condition characterized by consumers saving more is recession. During a recession, economic activity slows down, and consumers often become more cautious with their spending. This typically leads to increased savings as individuals prioritize saving for uncertainties rather than making discretionary purchases.

In this context, prosperity would indicate economic growth and increasing consumer confidence, where spending is more prevalent rather than saving. Inflation relates to the overall increase in prices, which can lead to decreased purchasing power and potentially encourage savings if consumers feel prices will continue to rise. Recovery denotes a phase after a recession where the economy begins to improve, and consumer spending typically increases again as confidence returns.