Canadian net saving in the first quarter of 2017 was $22 billion. Holdings of financial assets increased by

$162 billion and the value of shares in corporations increased by $113 billion.

Source of data: Statistics Canada, CANSIM Table 378-0119

Explain why higher share prices are equivalent to saving.

Higher share prices are equivalent to saving because both increase ______ .

A.

real GDP

B.

household wealth

C.

consumption expenditure

D.

the stock of productive capital