One In the News article titled "Consumer Confidence Index at All-Time Low" indicates that consumer confidence decreased.As a result,which of the following is most likely to happen?
A)Autonomous consumption will decrease.
B)Total spending will increase.
C)Investment will increase.
D)Government spending will decrease.

Question

Quizplus · Accepted Answer

A decrease in consumer confidence means that people are less likely to make purchases, therefore their autonomous consumption will decrease. This can lead to a decrease in total spending as well. Investment and government spending are not directly affected by consumer confidence.

One in the News Article Titled "Consumer Confidence Index at All-Time