Zhou that estimates that households increase their annual consumption by 6 cents for every additional dollar of home equity. In macroeconomics In macroeconomics, a rise in real wealth increases consumption, shifting the IS curve out to the right, thus pushing up interest rates and increasing aggregate demand. A decrease in real wealth does the opposite. See also Income effect Income elasticity of demand Money illusion Ricardian equivalence Wealth (economics) Wealth elasticity of demand References Wealth Economics effects