A decrease in consumers' confidence in banks would lead to _ in the velocity of money and result in the ad curve shifting to the _.

A decrease in consumers' confidence in banks would lead to decrease in the velocity of money and result in the ad curve shifting to the left.

Why is consumers confidence important?

There is no doubt that consumer spending drives the majority of industrialized service-based economies, including the United States, where it accounts for over 70% of GDP. Given the erratic and dispersed character of consumers overall, forecasting future patterns can be highly challenging even while monitoring this spending is rather simple.

Features of consumer confidence

Consumer confidence refers to consumers' optimism on the state of the economy and their own financial situations.

Surveys are used to collect data to generate the Consumer Confidence Index, which measures consumer confidence.

Investors should pay attention to the index since it can show consumer spending and the success of monetary policy.

Learn more about Consumers confidence

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A decrease in consumers' confidence in banks would lead to _____ in the velocity of money and result in the ad curve shifting to the _____.

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Why is consumers confidence important?

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A decrease in consumers' confidence in banks would lead to _ in the velocity of money and result in the ad curve shifting to the _.