Low stock market prices might ________ consumers willingness to spend and might ________ businesses willingness to undertake investment projects.

Question

Quizplus · Accepted Answer

Low stock market prices can decrease consumers' willingness to spend because they feel less wealthy and more uncertain about the economy. Similarly, businesses may be less willing to invest due to the same economic uncertainty and potentially lower valuations.

Low Stock Market Prices Might ________ Consumers Willingness to Spend