Question

Question 11 1 pts Total U.S. home equity grew by about $9.6 trillion during 2001-2004 to comprise more than one-half of the wealth of the typical U.S. household. As a result, it is most likely that during this period O Households'consumption was not significantly affected by this housing boom, since this was merely a transitory increase in income O Households' consumption was increasing due to, among other things, the wealth effect O Households consumption was decreasing as people were pouring more money into the housing market, which is a means of saving Precautionary savings were causing households' consumption to stagnate as people were saving to hedge against the anticipated market crash Question 12 1 pts If a company accumulates inventories of raw materials in anticipation of increasing customer orders, this illustrates O unplanned inventory investment O more pessimistic animal spirits. O planned inventory investment. O an increase in MPC.

Answer 1

13 9 a company accumulates inventaries of raw material in anticipation of increasing customer orders, this illest rates : - planned innen tary investment

रवि Total us. home equily grew about $9.6 trillion during 2001-on lo comprese more than 211-365 Sunday one - half of the wealth of the teppical wis household. As a result it is most likely that during this period Household consumption was increasi due to amany other thing, the wealth effect.