An increase in consumer confidence will likely have which of the following effects?

Question

Quizplus · Accepted Answer

An increase in consumer confidence typically leads to an increase in consumer spending, which boosts aggregate demand. This is represented in macroeconomic models by a rightward shift in the IS curve, as the IS curve represents the relationship between the interest rate and the level of income that brings the goods market into equilibrium.

An Increase in Consumer Confidence Will Likely Have Which of the Following