Explain why higher stock prices and higher real estate values are equivalent to saving. U.S. household wealth

Question:

Explain why higher stock prices and higher real estate values are equivalent to saving.

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 9780137470822

14th Edition

Authors: Michael Parkin

See More Books

Question Posted: Apr 07, 2024 07:00 AM

See More Questions

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....
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
I recently heard my neighbor discussing how one of our other neighbors lost his job. My neighbor assumed that the person who lost his job was probably lazy or not smart enough for the job, without...
Marilyn's parents have agreed to help her purchase a new car upon graduation in four years. They have given her two choices. The first choice is that they will give her $3,890 each year for the next...
Why do employees not take suggestion systems seriously in some companies? What can management do to improve the credibility of its employee suggestion system?
16-10. What is the difference between a coupon and a deal?
Fortel Manufacturing identified the following data in its two production departments. Required 1. What is the companys single plantwide overhead rate based on direct labor hours? 2. What are the...
You own a stock that had returns of 13.30 percent, 16.70 percent, 22.60 percent, and 20.80 percent over the past four years. What was the arithmetic average return for this stock? 10.40% 8.73% 9.37%...
You are given a path to a file of comma-separated values (CSV), jobs.csv, which contains people's names and job titles, such as Dancer, Nurse, Pilot, etc. The dataset has two columns: 'name' (a...
Are U.S. exports part of U.S. induced expenditure or autonomous expenditure? Are U.S. imports part of U.S. induced expenditure or autonomous expenditure? U.S. imports are recovering thanks to the $2...
When the equilibrium real GDP is below potential GDP, how does the unemployment rate comparewith the natural rate? What is the result of this state of affairs that restores the long-run equilibrium?
A cylindrical fuel rod of 2 cm in diameter is encased in a concentric tube and cooled by water. The fuel generates heat uniformly at a rate of 150 MW/m3. The convection heat transfer coefficient on...
2. Getting ready for Logarithms and Calculus! a. Fill in the chart and graph the function (I advise practicing on your scientific calculator and desmos. X f(x) = Inx 0 0.5 1 e 10...
JoJo Co. had the following balances and information for October. Beg. finished goods inventory = $30 Beg. work in process inventory = $5 Beg. raw materials inventory = $15 End. finished goods...
Subway sales have been declining since 2014. In the US, Subway has closed a number of stores due to over-expansion, outdated operations, and uninspiring menus. In Canada, Subway took a different...
Harvey Auto Parts purchased a new crane on September 1 for $35,000, paying $10,000 cash and signing a 7%, 12-month note for the remaining balance, interest to be paid at maturity. The crane is...
e4(k+1) Find the sum of the series. k = 1 8
For each of the following, to how many places will you round off your final answer? (a) When measuring the number of questions students answered correctly on a test. (b) When measuring what...
What is the order p of a B + -tree? Describe the structure of both internal and leaf nodes of a B + -tree.
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $537,600, a unit variable cost of $50, and a unit selling...
You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your...
Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000). Ending balances in the...

Explain why higher stock prices and higher real estate values are equivalent to saving. U.S. household wealth

Question:

Step by Step Answer:

Saving adds to a households we...View the full answer

Macroeconomics

Students also viewed these Business questions