Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 19

In what direction will each of the following occurrences shift the consumption and saving schedules, other things equal? LO2
a. A large decrease in real estate values, including private homes.
b. A sharp, sustained increase in stock prices.
c. A 5-year increase in the minimum age for collecting Social Security benefits.
d. An economy-wide expectation that a recession is over and that a robust expansion will occur.
e. A substantial increase in household borrowing to finance auto purchases.