According to an estimate published by the Federal Reserve,an increase in housing prices and/or stock prices results in __________ percent increase in the amount of consumer spending.

Question

Quizplus · Accepted Answer

An increase in housing prices and/or stock prices typically results in a 3.75 percent increase in the amount of consumer spending, according to estimates published by the Federal Reserve. This is known as the wealth effect, where consumers feel wealthier and more confident in their financial situation when the value of their assets, such as homes and stocks, increases, leading to an increase in spending.

According to an Estimate Published by the Federal Reserve,an Increase