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Consumer confidence survey

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One of the indices that economists use to gauge consumer expectations is the consumer confidence survey. This is an indirect measure of consumer expectations on the health of the economy. If consumer confidence increases, then everything else held constant, this will increase consumer spending. (The opposite is true for a decrease in consumer confidence.) Use the model of loanable funds to determine the effect of an increase in consumer confidence on nominal exchange rates and the nominal interest rates. What effect will this have on all nominal interest rates?

Reference no: EM131877560

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