wealth effect
Definition
Changes in aggregate demand caused by change in the value of assets such as stocks, bonds, gold, property. Increase in the market value of these assets induces a feeling of being 'richer' in their owners (even if no additional cash is realized) and often tends to encourage spending and to dampen savings.
wealth effect is in the Economics, Politics, & Society subject.
wealth effect appears in the definition of the following term: Pigou effect
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