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.

---

Definitions:

Turgor Pressure

The pressure of water pushing the plasma membrane against the cell wall of a plant cell, contributing to the cell’s rigidity.

Plasmolysis

The process in which plant cells lose water in a hypertonic solution, resulting in the shrinkage of the cell membrane away from the cell wall.

Solute

A substance that is dissolved in another substance, forming a solution.

Solvent

A substance in which a solute is dissolved to form a solution, typically a liquid.