Question

In order for people to spend money, they need confidence that they will _____ in the future. experience hyperinflation have an economic downturn earn more money

Answer 1

In order for people to spend money, they need confidence that they will earn more money in the future. Earning money is not that easy. This is a guide for people on how much to spend and budget their money.

Answer 2

The correct answer is: earn more money.

Step-by-step explanation:

In order for people to spend money on goods and services, they need confidence that they will earn more money in the future. This is also termed as high consumer confidence.

High consumer confidence leads to a higher marginal propensity to consume. Low consumer confidence is not good for an economy and it indicates an economic downturn.

There are a number of factors such as, inflation rate, unemployment, house prices, economic situations, etc that affect the consumer's confidence.