Answered

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Consumer spending

A. Is affected by consumer confidence.
B. Is the same as autonomous saving.
C. Impacts the aggregate supply curve.
D. Is the smallest spending component.

Sagot :

GinnyAnsweridn

Final answer:

Consumer spending is affected by consumer confidence, which plays a significant role in influencing aggregate demand.


Explanation:

Consumer spending is influenced by consumer confidence. When consumers are optimistic about the economy, they are more likely to spend on major items like cars, impacting aggregate demand. A decrease in consumer confidence can lead to a decrease in consumption, affecting the overall economy.


Learn more about Consumer spending and consumer confidence here:

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