Question: Hello can you help me answer this two part question, Thanks! Please include graphs to help me get a better understanding! Indian Wealth Rises Indian

Hello can you help me answer this two part question, Thanks! Please include graphs to help me get a better understanding!

Indian Wealth Rises

Indian net saving in the first quarter of 2018 was 20 billion Rupee. Holdings of financial assets increased by 150 billion Rupee and the value of shares in corporations increased by 110 billion Rupee.

a) Explain why higher share prices are equivalent to saving. (4 marks)

b) Explain how a rise in household financial assets would be expected to influence consumption expenditure and saving and how the consumption function and the saving function would change. You may use graphs to explain this. (5 marks)

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