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From March 2018 to September 2019, Turkey's Consumer Confidence Index

Question 83

Multiple Choice

From March 2018 to September 2019, Turkey's consumer confidence index fell from 99.1 to 94.2. How would such a change impact the IS curve in Turkey?


A) Decreased consumer confidence about the future lowers current consumption, causing the IS curve to shift left.
B) The increase in the consumer confidence index means consumers expect income to rise, and this increased consumer spending leads to a right shift in the IS curve.
C) The IS curve is not affected by changes in consumer confidence.
D) The decreased consumer confidence today implies a higher consumer confidence for the future, and this increases consumption and shifts the IS curve to the left.

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