In general, when income falls, the willingness and ability to borrow and spend will

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When income falls, individuals and households often have to prioritize what they spend their money on, and may cut back on discretionary spending such as borrowing and purchasing non-essential items or services. Additionally, lenders may be less willing to lend money to individuals with lower incomes, which can further decrease the ability to borrow and spend.

In General, When Income Falls, the Willingness and Ability to Borrow