Effects of increase in consumer confidence on market


Given an economy that is operating at less than the full employment level, analyze the effects of an increase in consumer confidence on the following markets. Start with an initial equilibrium in each market.

1. The market for goods and services and the relevant variables in the market.

2. The money market and the relevant variables in the market.

3. The foreign exchange market and the relevant variables in the market.

4. The market for single family homes and the relevant variables in the market.

5. The market for household furniture and the relevant variables in the market.

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