Suppose that an increase in consumer confidence raises, Microeconomics

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Suppose that an increase in consumer confidence raises

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?

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Microeconomics: Suppose that an increase in consumer confidence raises

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Microeconomics: Suppose that an increase in consumer confidence raises

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