A fall in consumer confidence about the future, which induces consumers to spend less and save...
A fall in consumer confidence about the future, which induces consumers to spend less and save more, will, according to the Mundell–Fleming model, with fixed exchange rates, lead to:
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a. a fall in consumption and income. |
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b. no change in consumption or income. |
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c. no change in income but a rise in net exports. |
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d. a fall in income but a rise in net exports. |
Homework Answers
A fall in the consumer confidence which will induce them to spend less and save more when the exchange rates are fixed will lead to:-
- A fall in consumption and income
option(A)
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A fall in consumer confidence about the future, which induces
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