Mandeville005 Mandeville005
  • 22-04-2020
  • Social Studies
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How will a decrease in personal income affect the market?

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bossaminah101
bossaminah101 bossaminah101
  • 22-04-2020

Answer:

If disposable income decreases, households have less money to spend and save, which then forces consumers to consume less and become more frugal. This decrease in consumption could then decrease corporate sales and corporate earnings, decreasing the value of individual stocks.

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