Which of these typically reduces consumer confidence?

High unemployment rates typically reduce consumer confidence because they signal economic instability and uncertainty about job security. When unemployment is high, many individuals may fear losing their jobs or struggle to find new employment, leading to a more cautious approach to spending. This diminished confidence is reflected in reduced consumer spending, which further impacts economic growth as consumers are less likely to make purchases on non-essential goods and services.

In contrast, increasing wages generally enhances consumer confidence as individuals have more disposable income to spend. Stable inflation rates create a predictable economic environment, making it easier for consumers to plan their expenditures. Low interest rates often encourage borrowing and spending, stimulating confidence among consumers who might take advantage of cheaper loans for purchases such as homes or cars. Thus, it's clear that high unemployment rates have a more direct negative impact on consumer sentiment compared to the other factors listed.