The Wealth Effect Is

question 132

Multiple Choice

The wealth effect is

• A)the result of wealthy people increasing the savings.
• B)the increase in savings and consumption resulting from increases in residential house prices and gains in the stock markets.
• C)the increase in the number of wealthy individuals in a country.
• D)the result of large increases in the balance sheets of the banks.

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Definitions:

Credit Card Sales

Transactions where the purchases are made by consumers using credit cards.