Suppose there is a decrease in consumer confidence and the central bank controls the interest rate. Using the IS-LM model, which of the following represents the complete list of variables that must decrease in response to this consumer pessimism?
Question 12Select one:
a.
Consumption.
b.
Consumption and investment.
c.
Consumption, output and the interest rate.
d.
Consumption and output.
e.
Consumption, investment and output.