Suppose that an increase in consumer confidence raises consumers expectations of future income and thus the amount

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Suppose that an increase in consumer confidence raises consumers’ expectations of future income and thus 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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Macroeconomics

ISBN: 978-1464168505

5th Canadian Edition

Authors: N. Gregory Mankiw, William M. Scarth

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