Question: Other things equal, an improvement in business confidence would Multiple Choice reduce the price level and unemployment. decrease the interest rate and cause aggregate demand

Other things equal, an improvement in business confidence would Multiple Choice reduce the price level and unemployment. decrease the interest rate and cause aggregate demand to increase. increase consumption and net exports, causing aggregate demand to shift rightward. increase investment spending, real GDP, and the price level

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The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.