Do think households increased the consumption spending

Reference no: EM132636561

Given the distinction between risk and uncertainty, what do you think happened to consumption demand by American households when plans/proposals for CARES Act 2020 passage were first announced, if we are to assume that:

Question 1: Households perceived the prospect of the passage of the CARES Act to be a risky event (they had some expectations of probability of the Act passage into law), as opposed to?

Question 2: Households perceived the prospect of the passage of the CARES Act to be an uncertain event (they formed no prior expectations of probability of the Act passage)?

Question 3: Do you think households increased their consumption spending in anticipation of the Act passage under (1) above, or decreased their consumption spending in anticipation of the Act passage under (2)?

Reference no: EM132636561

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