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Samara Landry
Today, 14:36
The wealth effect refers to the fact that
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Valeria Hess
Today, 17:57
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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.
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