1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AURORKA [14]
2 years ago
10

When a person receives an increase in wealth, what is likely to happen to consumption and saving?

Social Studies
1 answer:
KiRa [710]2 years ago
6 0

When a person receives an increase in wealth then the consumption increases and Savings decreases. This is related to the theory of "Wealth effect".

The wealth effect states that when the wealth of households rises, it results as rise in asset values, such as corporate stock prices or home values, they spend more and stimulate the broader economy.

The theory is dependent on economic behavior of a person that consumers feel more financially secure and confident about their wealth when their homes or investment increase in value. They are made to feel richer, even if their income and fixed costs are the same as before.

To learn more about Wealth Effect, here

brainly.com/question/19592388

#SPJ4

You might be interested in
List at least three important details about Italian immigrants’ journey to the United States.
Monica [59]
The main reason why people left Italy and traveled to America was poverty brought about by unemployment. The dream of earning enough money to return to Italy and buy lands was a great motivator. The journey of 3,000 miles by ship took almost 3 months. They had to pass through the Ellis Island Immigration Center for mental and physical examinations. After the mental and physical examinations, the migrants were sent to a room where they had to answer 32 questions to establish whether they could enter America. Failure in the examinations would mean separation from their families and deportation back to Italy.
7 0
3 years ago
How did John Quincy Adams become President in 1824?
BigorU [14]

Answer:

In 1824

Explanation:

The election8l was decided by the house of representatives which elected John

6 0
3 years ago
My contributions to the community ​
viva [34]

Answer:

All the questions you answered and how many times you helped other people/animals.

3 0
2 years ago
What american dish is made by deep-frying a type of italian dumpling?
nevsk [136]

Answer:

toasted ravioli

Explanation:

5 0
2 years ago
Read 2 more answers
June is interested in looking at whether social media use predicts feelings of loneliness and found there was a positive relatio
Alexandra [31]

Answer:

The amount of time spent with friends is a third-variable problem.

Explanation:

Third variable problem is a term that describes a type of mix up or confused conclusion where by, third variable leads to a confound causal relationship between two other variables.

In this case, June found that social media use is actually not associated with the feeling of loneliness, because the third variable is actually the cause or have the direct relationship to the feeling of loneliness.

6 0
3 years ago
Other questions:
  • The term negative reinforcement can best be described as a situation in which:
    7·1 answer
  • DNA is contained in a different way in prokaryotic cells than it is in eukaryotic cells because
    10·1 answer
  • These countries are known as the baltic nations
    14·1 answer
  • PLZ HELP ME!!!
    5·1 answer
  • How is the potential rate of return on investments related to the level of risk?
    14·2 answers
  • Which of the following statements about sexual attraction and intimacy in the work place is true?
    9·1 answer
  • HELPPPPP 50 POINTSAt the end of the Washington administration, the United States faced the challenge of changing the government
    12·2 answers
  • ASAP Please answer I only go 7 minutes
    12·2 answers
  • Explain how the analysis of Dani spirits illustrates the difference between the etic and emic perspectives?
    9·1 answer
  • 10. The Ohio Constitution gives Ohioans
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!