=+ 9. Suppose that an increase in consumer confi - dence raises consumers expectations about their future

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=+ 9. Suppose that an increase in consumer confi -

dence 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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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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