How do reductions in consumer spending affect the economy?

Answer:

Answer

Very adversly! Reduction in cosumer spending can bring by a recession. If people spend less, there will be less demand for goods and services. With demand, production will be decreased. When production is decreased, cost-cutting measures will be implemented. People are laid-off, the economy detracts. Consumer spending is the back-bone of capitalist mixed-economies such as that of the US.

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