An increase in consumer confidence will tend to cause which of the following to occur?

Question

Quizplus · Accepted Answer

An increase in consumer confidence will lead to an increase in consumption spending, which will cause a rightward shift in the IS curve. This is because the IS curve represents the combinations of interest rates and output levels that will maintain equilibrium in the goods market, and an increase in consumption will require a higher level of output at any given interest rate.

An Increase in Consumer Confidence Will Tend to Cause Which