Stock market bubbles impact consumers by:

Question

Quizplus · Accepted Answer

Stock market bubbles often create a sense of wealth among investors, leading them to spend more on goods and services, thereby increasing consumption. However, this also leads to a decrease in saving by investors as they feel that their investments are secure and there is no need to save as much. This can lead to a negative impact on the economy when the bubble bursts and investors lose their money, causing a reduction in spending and an increase in savings out of fear of further losses.

Stock Market Bubbles Impact Consumers By