Fear of a major recession causes stock prices to fall,everything else held constant,which in turn causes consumer spending to

Name: Fear of a major recession causes stock prices to fall,everything else held constant,which in turn causes consumer spending to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When stock prices fall, people feel less wealthy and become less confident about the future. This decrease in confidence can cause consumers to spend less, leading to a decrease in consumer spending. Therefore, the correct choice is C: decrease.

Fear of a Major Recession Causes Stock Prices to Fall,everything