Figure 7-1
-Refer to Figure 7-1. A movement from point B to point E on could be due to
A) an increase in consumer confidence.
B) an increase in the market interest rate.
C) an increase in personal income taxes.
D) a decrease in transfer payments.

Question

Figure 7-1 
-Refer to Figure 7-1. A movement from point B to point E on could be due to
A) an increase in consumer confidence. 
B) an increase in the market interest rate. 
C) an increase in personal income taxes. 
D) a decrease in transfer payments.

Quizplus · Accepted Answer

An increase in consumer confidence typically leads to higher consumer spending, which can shift the demand curve to the right, resulting in a movement from point B to point E.

Figure 7-1 -Refer to Figure 7-1. a Movement from Point B to Point