During an economic expansion, it is common for the value of property to rise. This means that

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During an economic expansion, it is common for the value of property to rise. This means that the value of households’ wealth rises without them taking any specific action. How would you expect this to affect current saving behavior? That is, would you expect an increase in a household’s wealth to increase or reduce the fraction of today’s income that they devote to savings?

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Principles Of Economics

ISBN: 9781292294698

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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