Canadians' Wealth Rises

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 ofdata: StatisticsCanada, CANSIM Table378-0119

Explain why higher share prices are equivalent to saving.

Higher share prices are equivalent to saving because both increase______ .

A.

real GDP

B.

consumption expenditure

C.

household wealth

D.

the stock of productive capital