]If consumers become more optimistic,which of the following is the most likely in the short run?

Question

Quizplus · Accepted Answer

When consumers become more optimistic, they are more likely to spend money, which leads to an increase in output. This increase in output leads to an increase in money demand, as people need more money to buy the increased goods and services. The increase in money demand leads to an increase in the interest rate, as banks raise interest rates to attract more deposits.

]If Consumers Become More Optimistic,which of the Following Is the Most