Discuss how this might have affected consumption

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Reference no: EM131135142

During the late 1990s, many observers claimed that the United States had transformed into a New Economy, and this justified the very high values for stock prices observed at the time.

a. Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.

b. Stock prices subsequently decreased. Discuss how this might have affected consumption.

Reference no: EM131135142

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