When a family's overall wealth increases, their consumption expenditures increase because their need for additional savings to meet their savings target is reduced is referred to as the wealth effect.

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The wealth effect describes how an increase in a family's wealth leads to an increase in their consumption expenditures because they feel less need to save, given that their wealth accumulation has already improved their financial security.

When a Family's Overall Wealth Increases, Their Consumption Expenditures Increase