Ask Question
Today, 14:36

The wealth effect refers to the fact that

+1
Answers (1)
  1. Today, 17:57
    0
    The wealth effect refers to the fact that when the price falls, the real value of household wealth rises and consumption will also rise. The wealth effect causes movement along the demand and supply curve due to the value of money and items changing. The wealth effect is used to determine people spending more money when the value of their assets rise.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The wealth effect refers to the fact that ...” 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