Suppose that an increase in consumer confidence raises consumers expectations about their future income and thus increases the amount they want to consume today. This change might be interpreted as an upward shi in the consumption function. How does this shi affect investment and the interest rate?

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Suppose that an increase in consumer confidence raises  consumers expectations about their future income and thus increases the amount they want to consume today. This change might be interpreted as an upward shi in the consumption function. How does this shi affect investment and the interest rate?

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