One News Wire article in the text says,"After years of living happily beyond their means,Americans are finally facing financial reality." Ceteris paribus,a decrease in consumer confidence will result in:

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A decrease in consumer confidence means consumers are less likely to spend, which will result in a decrease in the equilibrium level of output. This is because businesses will produce less to avoid excess inventory and layoffs may also occur, leading to a decrease in overall economic activity. Choices A, B, and C are incorrect as they imply an increase in consumer spending and demand, which is not consistent with a decrease in consumer confidence.

One News Wire Article in the Text Says,"After Years of Living