| Quarter | Net consumer credit flow (£ billions) |
|---|---|
| Q1 2021 | -1.2 |
| Q2 2021 | 0.8 |
| Q3 2021 | 1.5 |
| Q4 2021 | 2.2 |
| Q1 2022 | 2.9 |
| Q2 2022 | 3.5 |
| Q3 2022 | 3.8 |
| Q4 2022 | 1.9 |
| Q1 2023 | 0.7 |
Which of the following macroeconomic changes is most likely to explain the sharp decline in net consumer credit lending between Q3 2022 and Q1 2023, and the corresponding slowdown in household consumption?
A reduction in the main rate of Value Added Tax (VAT) on consumer durable goods
A significant increase in consumer confidence regarding future household income
A tightening of credit availability and macroprudential regulations by financial authorities
A decline in the household savings ratio as consumers increase their marginal propensity to consume
