Use the ZZ-Y Model Presented in Chapter 3 to Illustrate

question 63

Essay

Use the ZZ-Y model presented in chapter 3 to illustrate the effects of a reduction in consumer confidence on the economy.Also,explain what effect this reduction in consumer confidence has on the economy.

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Definitions:

Fee Simple Absolute

The most extensive form of property ownership, granting the holder complete control over the property, with the right to use, lease, or sell.

Fair Market Value

The price that a willing and informed buyer would pay to a willing and informed seller when neither is under duress to buy or sell.

Public Purpose

Justification for government action or policy that is intended to benefit the public at large or improve public welfare.

Earnest Money

A deposit made to a seller representing a buyer's good faith to enter and proceed with a transaction, typically in real estate deals.