If Americans' home equity falls substantially, it would ____ wealth and consumer confidence, ____ consumption, and ____ aggregate demand.

Question

Quizplus · Accepted Answer

If Americans' home equity falls substantially, it would decrease wealth and consumer confidence, decrease consumption, and decrease aggregate demand. This is because when home equity falls, homeowners feel less wealthy and are likely to reduce their consumption spending, leading to a decrease in aggregate demand.

If Americans' Home Equity Falls Substantially, It Would ____ Wealth