Which of the following is most likely to result from a sustained and substantial increase in residential property prices across an economy?
An increase in the household saving ratio as consumers seek to match their increased asset wealth.
A decrease in aggregate consumer spending due to the increased cost of housing for prospective first-time buyers.
An increase in household consumption driven by a positive wealth effect.
An improvement in the balance of payments on the current account due to higher domestic wealth.
40 exam-style questions on Edexcel A A Level Economics 2.2.2 Consumption (C). Each one has a worked solution and a mark scheme showing where the marks go.