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Home Q & A Board Other Fields Homework Help Business Economics
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valputin valputin
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8 years ago
According to the household liquidity effect, higher stock prices lead to increased consumption expenditures because consumers
A) can now afford more expensive imports.
B) feel more secure about their financial position.
C) believe that their wages will increase due to increased profitability of firms.
D) want to sell stocks and spend the proceeds before stock prices fall.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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#2
8 years ago
Perfect answer, thx
Our course uses > The Economics of Money, Banking and Financial Markets
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#3
8 years ago
Great! Happy to be right Face with Stuck-out Tongue
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