Stock market bubbles impact consumers by:

Question

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During a stock market bubble, people become overly optimistic about the economy and their personal financial situation, leading to increased consumption of luxury goods and less saving. This is because people feel that they can afford to consume more and do not need to save as much since their investments are doing well. However, when the bubble pops and stock prices crash, people may regret their spending choices and may be forced to cut back on expenses and increase their savings.

Stock Market Bubbles Impact Consumers By