Question: How does a decrease in stock prices affect the economy? Lower stock prices create uncertainty about future economic growth and income Households and firms often

How does a decrease in stock prices affect the economy?

  1. Lower stock prices create uncertainty about future economic growth and income
  2. Households and firms often decrease spending in response to lower stock prices
  3. Lower stock prices affect a firm's ability to raise funds for investment
  4. All of the above

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