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
What is 2 issues jimmy carter addressed while being governor
iris [78.8K]

While being governor of Georgia, Jimmy Carter addressed the issues of Civil Rights, segregation and discrimination based on race AND socioeconomic discrimination and disparity (especially  the socioeconomic status' effect on education).

4 0
3 years ago
_____ study the link between the brain and cognitive processes, sometimes by observing an organism during a scanning session whi
alex41 [277]

Answer:cognitive neuro science

Explanation:

3 0
3 years ago
What is a planned goal for the europa clipper mission?
Georgia [21]
The goal for Europa Clipper mission of the NASA is to study the Galilean moon, Europa. This is a follow-up mission of the observations made by the spacecraft Galileo which informed that there is a sub-surface ocean under the Europa. This will eventually give us information about the habitability of the Europa. 
8 0
3 years ago
What has been the main motivation for U.s. involvement in southwest Asia in the twenty first century?
Inessa [10]

Answer:

well the us didnt have a factor for it

Explanation:

8 0
3 years ago
How did West African Civilizations record their history and cultural traditions?
KonstantinChe [14]

Explanation: But Africans had their particular system of recording past events, situations, and traditions before Europeans started writing about it. This is based on collecting oral testimonies. As a result, Non-African historians used written documentation to chart the history of the continent.

4 0
3 years ago
Read 2 more answers
Other questions:
  • What color is the Grinch?<br><br> Green <br> Blue <br> White <br> Black
    7·2 answers
  • Why is no one helping me<br><br><br> https://brainly.com/question/8481026
    14·2 answers
  • Although the state's authority derives from the implicit threat of physical force, when the state resorts to physical coercion t
    5·1 answer
  • The U.S. government has a plan in place to reduce tobacco use to the point that it is no longer a public health problem. One of
    6·2 answers
  • In the future, will people prefer the cities to live in and why?????
    8·1 answer
  • The principle illustrated when most people are able to recognize a variety of examples of chairs even though no one category mem
    15·1 answer
  • What is janies experience of joes funeral, as it is captured in this sentence, janie sent her face to joes funeral, and herself
    14·1 answer
  • Stay-at-home mothers entering the work force, following a divorce or death of spouse, and who are not able to find full-time emp
    13·1 answer
  • In Country B, business owners decide what to produce, how much to produce, and who to produce for. The CEO of Volunteer Audio, o
    12·1 answer
  • TRUE OR FALSE ?? the British turned to their "Southern Campaign" because they thought that SC and other southern colonies were f
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!