Ask Question
13 April, 11:09

If every $1,000 increase in the real price of homes adds 2 cents to annual consumer spending (the "wealth effect"), by how much did consumption decline when home prices fell by $2 trillion in 2006-2008?

+2
Answers (1)
  1. 13 April, 14:31
    0
    If consumer spending goes up $.02 per 1000, that is. 0002%

    So 2 trillion X. 0002% = $40,000,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If every $1,000 increase in the real price of homes adds 2 cents to annual consumer spending (the "wealth effect"), by how much did ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers