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Greeley [361]
3 years ago
15

How will a decrease in personal income affect the market?

Social Studies
1 answer:
stepan [7]3 years ago
7 0

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.

Explanation:

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A government that operates in a market economy MIGHT become involved in the economy A) to increase the profits of a specific com
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