Multiplier effect

Understanding of Macro economics is basic for global perspective. Excerpt from NY times:

Maybe nothing, but it makes me think that higher housing prices make consumers want to buy more houses (and that is wrong … unless consumers only want to buy houses when housing prices are on the rise, signaling this is a good investment). The article, however, says that this is a macroeconomic effect. Higher housing prices are raising consumer confidence which is increasing overall consumer spending.

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