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how does an economic depression affect local business?

Question

how does an economic depression affect local business?

Explanation:

Brief Explanations

During an economic depression, consumer spending drops due to reduced income and job - insecurity. This leads to lower sales for local businesses. Also, access to credit becomes difficult, making it hard for local businesses to invest or even stay afloat.

Answer:

An economic depression negatively affects local businesses through reduced consumer spending and limited access to credit.