An increase in the consumer sentiment index indicates that consumers are
A) becoming more optimistic about their future income and employment prospects.
B) becoming less optimistic about their future income and employment prospects.
C) expecting the inflation rate to rise in the near future.
D) expecting the inflation rate to fall in the near future.

Question

Quizplus · Accepted Answer

An increase in the consumer sentiment index indicates that consumers are becoming more optimistic about their future income and employment prospects. This is because the consumer sentiment index measures consumers' attitudes and expectations towards the economy and their personal financial situation. A higher index suggests that consumers are more confident and positive about the future, which typically leads to increased spending and economic growth.

An Increase in the Consumer Sentiment Index Indicates That Consumers