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Country X is a growing economy located in southeast Asia. Although it has a large population, it also has a disproportionately high number of working age people. A large English-speaking workforce and low labor costs make it a competitive outsourcing destination. However, as is the case with most growing economies, inflation is quite high in country X. As a country that is poised to be an economic superpower, country X's stock markets are booming, Real estate prices have been encreasing by 20 percent each year. Salim Habib is a guest speaker at a talk organized consumption and investment will fall. Ricky Cafrall, a student is not convinced. He claims that the rally in housing and stock prices will actually increase household wealth and consumption. In claiming that household wealth and consumption will increase, Ricky is ignoring. A.the fact that stocks and houses form a part of household. B. a person's marginal propensity to consume. C. the fact that employment is increasing. D.the real value of household wealth.

Business Economics, Economics

  • Category:- Business Economics
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