Meaning of “wealth effect” in the English Dictionary

business-english dictionary

"wealth effect" in Business English

See all translations

wealth effectnoun [ S ]

uk us ECONOMICS

the theory that when the value of assets such as gold, shares, and property rises, people spend more:

One of the primary drivers of spending by American consumers is the wealth effect of rising share prices.

(Definition of “wealth effect” from the Cambridge Business English Dictionary © Cambridge University Press)