Figure 10.7 -Refer to Figure 10.7..A movement from point B to point D could be caused by A) an increase in the target interest rate. B) an increase in consumer confidence. C) an increase in the term structure effect. D) a decrease in the expected rate of inflation.

Question

Quizplus · Accepted Answer

An increase in consumer confidence can lead to higher spending and investment, shifting the demand curve and causing a movement from point B to point D.

Figure 10.7 -Refer to Figure 10.7..A Movement from Point B to Point