Many financial analysts and economists eagerly await the press releases for the reports on
the consumer confidence index. What would be the effects of a negative report?
A.
A negative report on consumer confidence would make consumers feel pessimistic about the future. This would likely reduce consumer spending, shifting AD to the right, increasing GDP and increasing the price level.
B.
A negative report on consumer confidence would make consumers feel pessimistic about the future. This would likely reduce consumer spending, shifting AD to the left, reducing GDP and the price level.
C.
A negative report on consumer confidence would make consumers rush to buy goods before prices increase. This would likely increase consumer spending, shifting AD to the right, increasing GDP and the price level.
D.
No answers are correct