If every $1,000 increase in the real price of homes adds 7 cents to annual consumer spending

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If every $1,000 increase in the real price of homes adds 7 cents to annual consumer spending (the “wealth effect”), by how much did consumption decline when home prices fell by $2 trillion in 2006–2008?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: May 03, 2018 09:05 AM

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If every $1,000 increase in the real price of homes adds 7 cents to annual consumer spending

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