Part 2/8:
In essence, when consumers limit their expenditures, it interrupts the flow of cash throughout various sectors. Retailers, when not receiving money from consumer transactions, struggle to pay wholesalers on time. This cascading delay continues down the supply chain, effectively halting the rapid turnover of money. Such a deceleration has consequences not only for cash flow but also for company profits, further contributing to the overall sluggishness in economic engagement.