c. What is the aggregate consumption function?

20. From the end of 1995 to March 2000, the Standard and Poor’s 500 (S&P 500) stock index, a broad measure of stock market prices, rose almost 150%, from 615.93 to a high of 1,527.46.

From that time to September 10, 2001, the index fell 28.5% to 1,092.54. How do you think the movements in the stock index influenced both the growth in real GDP in the late 1990s and the concern about maintaining consumer spending after the terrorist attacks on September 11, 2001?