Suppose there is a decrease in consumer confidence and the central bank controls the interest rate. Which of the following represents the complete list of variables that must decrease in response to this consumer pessimism?
A) Consumption.
B) Consumption and output.
C) Consumption and investment.
D) Consumption, output and the interest rate.
E) Consumption, investment and output.
Correct Answer:
Verified
Q2: Which of the following will cause a
Q3: We know with certainty that a decrease
Q4: Suppose there is a simultaneous tax increase
Q5: An increase in the reserve deposit ratio,
Q6: Assume that investment spending depends only on
Q8: An increase in the budget deficit decreasing
Q9: Suppose the economy is currently operating on
Q10: Suppose there is a simultaneous RBA sale
Q11: A decrease in the aggregate price level,
Q12: Suppose there is a simultaneous tax increase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents