A Fall in Consumer Confidence About the Future, Which Induces

Multiple Choice

A fall in consumer confidence about the future, which induces consumers to spend less and save more, will, according to the Mundell-Fleming model, with fixed exchange rates, lead to:

A) a fall in consumption and income.
B) no change in consumption or income.
C) no change in income but a rise in net exports.
D) a fall in income but a rise in net exports.