A decrease in confidence will cause
A)AD to increase (move to the right).
B)AD to decrease (move to the left).
C)AS to increase (move to down and to the right).
D)AS to decrease (move to up and to the left).

Question

Quizplus · Accepted Answer

A decrease in confidence will typically cause a decrease in consumption and investment, leading to a decrease in aggregate demand (AD) which would shift leftward.

A Decrease in Confidence Will Cause