00:02
Explain how each of the following will affect the consumption and savings schedule as they relate to gdp or the investment schedule, other things being equal.
00:12
A, a large increase in the value of real estate, including private houses.
00:16
B, a decline in real estate.
00:19
C, a sharp, sustained decline in stock prices.
00:22
D, an increase in the rate of population growth.
00:26
E, the development of a cheaper method of manufacturing computer chips.
00:29
F, a sizable increase in the retirement age for collecting social security benefits, and g, an increase in the federal personal income tax.
00:40
So part a, if this simply means household to become more wealthy, then consumption will increase at each income level.
01:28
The consumption schedule should shift upward, and the saving schedule should shift down.
02:08
The investment schedule may shift rightward if owners of existing homes sell them and invests.
02:13
Construction of new homes more than they previously did.
02:20
Part b, the decline in the real estate rate, real interest rate, will increase interest.
02:48
Specifically, it will increase interest -sensitive consumer spending.
03:03
The consumption schedule will shift up and the saving schedule shifts down.
03:30
Investors will increase investment as they move down.
03:45
The investment demand curve.
04:04
The investment schedule will shift up...