How does upward shift affect investment and interest rate


Suppose that an increase in consumer confidence raises consumers' expectations about their future income and thus increases the amount they want to consume today. This might be interpreted as an upward shift in the consumption function. How does this shift affect investment and the interest rate?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: How does upward shift affect investment and interest rate
Reference No:- TGS072327

Expected delivery within 24 Hours