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Q. In 2008, the debt of Canadian households rose much faster than their wealth as stock markets corrected and the housing market slowed down. During the first quarter of the year, overall household debt rose by about 3 percent, while personal disposable income rose by 2 percent (Financial Post Magazine, August 19, 2008).a. Explain why the growth of household wealth slowed in Canada.
b. When a household buys shares (stocks), does that represent consumption, saving, or investment? Explain.
c. When a household buys a new house, does that represent consumption, saving, or investment? Explain.
d. Illustrate what factors may influence a household when deciding between buying stocks, bonds, or a house?
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en spends her afternoon at the beachood also drinks rather than expenditure an equal amount of funds to go to a picture.
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Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
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