As consumer confidence declines the consumers spending drops during a recession. Public policies can help consumers to save money to help them to spend later by putting higher or lower taxes on certain objects. In a boom consumer confidence increases and at the same time consumer spending increases because of the wealth of a household which in turn increases income for the nation and helps the production of goods. I think that policies are more effective when achieving economic stability because even though it could take a few months for the changes to occur they change. This shows that reactions need to be quick to adjust the economy and to fix them in the correct ways to benefit the economy.
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