Consider the Following News Headline: "Increase in Consumer Confidence Leads

question 1

Multiple Choice

Consider the following news headline: "Increase in consumer confidence leads to increase in spending".Which of the following correctly describes the likely effect in our simple macro model?

• A)The consumption function shifts downward.
• B)The consumption function gets flatter.
• C)The AE function shifts upward.
• D)The consumption function shifts upward.
• E)Both C and D are correct.

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Definitions:

Customer Contact Audit

A systematic review of all the points at which a business interacts with its customers, aiming to improve service quality and customer satisfaction.

Flowchart

A diagram that displays a process or system using symbols and arrows to represent steps and the flow direction, respectively.

Relationship Customers

Customers with whom a business has established an ongoing relationship, characterized by repeated interactions and loyalty.

Loyalty

A consumer's commitment and repeated patronage to a brand or product, often driven by satisfaction, preference, or rewards programs.