Wealth effect | Trade Samaritan

Wealth effect

Changes in aggregate demand caused by change in the value of assets such as stocks, bonds, gold, property. Increase in the market value of these assets induces a feeling of being ‘richer’ in their owners and often tends to encourage spending and dampen savings

Changes in aggregate demand caused by change in the value of assets such as stocks, bonds, gold, property. Increase in the market value of these assets induces a feeling of being ‘richer’ in their owners and often tends to encourage spending and dampen savings

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