A reduction in consumer confidence will likely have which of the following effects?

Name: A reduction in consumer confidence will likely have which of the following effects?
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Question

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A reduction in consumer confidence means that consumers are less likely to spend money, resulting in a decrease in demand for goods and services. This leads to a leftward shift in the IS curve, as there is less demand for goods and services at any given interest rate. The LM curve is not affected by changes in consumer confidence.

A Reduction in Consumer Confidence Will Likely Have Which of the Following