Consider the Following News Headline: "Increase in Consumer Confidence Leads

Multiple Choice

Consider the following news headline: "Increase in consumer confidence leads to increase in spending".Which of the following correctly describes the likely effect in our simple macro model?

A) The consumption function shifts downward.
B) The consumption function gets flatter.
C) The AE function shifts upward.
D) The consumption function shifts upward.
E) Both C and D are correct.