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18 May, 04:27

Based on your understanding of the IS-LM model, graphically illustrate and explain what effect a reduction in consumer confidence will have on output, the interest rate, and investment.

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  1. 18 May, 04:33
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    Reduction in consumer confidence will decrease consumption demand, which will decrease output. IS curve ... view the full answer

    Explanation:

    Reduction in consumer confidence will decrease consumption demand, which will decrease output.
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