An increase in stock prices ________ the size of people's wealth and may ________ their willingness to spend,everything else held constant.

Question

Quizplus · Accepted Answer

When stock prices increase, the value of people's investments and stocks increase, therefore increasing their overall wealth. This can lead to an increase in their willingness to spend as they have more money to do so, everything else held constant.

An Increase in Stock Prices ________ the Size of People's