Suppose There Is an Increase in Consumer Confidence

question 50

Multiple Choice

Suppose there is an increase in consumer confidence.Which of the following represents the complete list of variables that must increase in response to this increase in consumer confidence?

• A)consumption
• B)consumption and investment
• C)consumption, investment and output
• D)consumption and output
• E) consumption, output and the interest rate

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Definitions:

Option to Expand

A strategic investment option that gives a business the flexibility to increase its operations or output at a later date.

Golf Course

A large area of land designed for the game of golf, featuring a series of holes with various configurations and hazards.

Property Developer

An individual or company that engages in the business of real estate development, including acquiring land, financing real estate deals, building or having builders construct projects.

U-joint Cross

The central component of a universal joint, which allows for the transfer of rotary motion between misaligned shafts.