2.6.2 Consumer Confidence
Completion requirements
Consumer confidence is faith in a nation's economic forecast. An anticipated increase in income leads consumers to spend more. So does a decrease in taxes.
When consumer confidence is low, consumers are likely to save more, and spend less. When consumer confidence is low, even a decrease in interest rates is unlikely to encourage spending.
When consumer confidence is low, consumers are likely to save more, and spend less. When consumer confidence is low, even a decrease in interest rates is unlikely to encourage spending.