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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 16
Use the following news clip to work Problem.
Americans $2.4 trillion Poorer
The Federal Reserve reported that household wealth decreased by $2.4 trillion or $21,000 per household in the third quarter of 2011. This drop is the steepest since 2008 and the second consecutive quarterly drop. Foreclosures lowered household debt slightly but credit card debt increased. Many households are struggling to buy the essentials and spending on food has decreased. Separately, the Bureau of Economic Analysis reported that consumption expenditure increased by $39 billion in the third quarter of 2011.
What factors might explain the actual changes in consumption expenditure and wealth that occured in the third quarter of 2011?
Americans $2.4 trillion Poorer
The Federal Reserve reported that household wealth decreased by $2.4 trillion or $21,000 per household in the third quarter of 2011. This drop is the steepest since 2008 and the second consecutive quarterly drop. Foreclosures lowered household debt slightly but credit card debt increased. Many households are struggling to buy the essentials and spending on food has decreased. Separately, the Bureau of Economic Analysis reported that consumption expenditure increased by $39 billion in the third quarter of 2011.
What factors might explain the actual changes in consumption expenditure and wealth that occured in the third quarter of 2011?
Explanation
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Verified
Fall in household wealth:
According to ...
Macroeconomics 11th Edition by Michael Parkin
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