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
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Im going to go with false but i might be wrong and if i am then im sorry
A government in which citizens choose members of a legislature to make policy, rather than making it themselves, was favored because
b. direct government by citizens was impractical, even though, in theory, direct democracy was more desirable than representative government.
Explanation:
Direct government made by the people for the people is what democracy was supposed to be about in the time but that model of work was impractical enough to not be considered seriously by the founding fathers who instead sought to make it a representative democracy.
A representative democracy is also much more suitable because only the people who have a genuine skill in making laws are brought in to make laws and the public gets their say in who does it for them.
I’ll give you all that I know
Censure.
Contested Senate Elections.
Declarations of War.
Expulsion.
Filibusters and Cloture.
Impeachment.
Investigations.
Nominations.
The measurement of economic activities is in monetary terms, whereas non-economic activities lack money measurement. Economic activities result in creation and accumulation of wealth as they are done to earn profit. Unlike non-economic activities which result in mental satisfaction and happiness
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