Explain how a rise in household financial assets would be expected to influence consumption expenditure and saving
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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.
U.S. household wealth grew to \($136.9\) trillion in the first quarter of 2021. Rising stock prices added \($3.2trillion\) to household financial assets and rising real estate values added \($1\) trillion.
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