When median home prices rise,the value of real wealth ________ and aggregate demand ________.
A) increases; is unaffected
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) is unaffected; is unaffected

Question

Quizplus · Accepted Answer

When median home prices rise, homeowners feel wealthier, which can lead to increased consumer spending, thus increasing aggregate demand.

When Median Home Prices Rise,the Value of Real Wealth ________