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So consumption goes down and savings go up? Wouldn't those savings go into the stock market, making stocks more expensive?
by TekMol 5y ago
So consumption goes down and savings go up?
Wouldn't those savings go into the stock market, making stocks more expensive?
- jallen_dot_dev 5y agoNo, consumption goes down and savings go down too. One person's spending is another's earnings (which impact savings). The money supply isn't fixed and the amount that money changes hands certainly isn't fixed either.