Gdp and target wealth

Enable Editing question 3.1 a) Briefly explain how a decrease in housing prices would affect consumption and investment. You may assume that consumers would like to maintain their target wealth. (word limit: max 100 words) (4 marks) You answer. b) Given your answer to a), what is likely to happen to GDP? Explain using a diagram. (4 marks) You answer. c) Given your answer to b), how can the government use fiscal policy to prevent GDP from changing? Use a diagram in your explanation. (4 marks) You answer. d) If the marginal propensity to import is large, what can be said about effectiveness of fiscal policy? (2 mark)