For This Question,assume That the Economy Is Initially Operating at the Natural

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.A reduction in consumer confidence will cause

A) an increase in investment in the short run.
B) a reduction in the real wage in the medium run.
C) an increase in the interest rate in the medium run.
D) ambiguous effects on investment in the medium run.
E) none of the above