| 单词 | wealth effect |
| 释义 | wealth effect The effect of the total wealth of an individual on his or her savings or liquidity functions. It is generally expected that an individual with larger net assets will spend a larger proportion of current income, and save less, than somebody with the same income but smaller net assets. It is also expected that an individual with larger net assets will hold more money balances relative to income than somebody with smaller net assets. This implies that the level of total net assets in the economy will affect the IS curve and LM curve. |
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