How does a forward located centre of gravity affect fuel consumption and stability?

A forward located center of gravity (CG) generally tends to increase stability in an aircraft. When the CG is positioned forward, the aircraft's design naturally enables the tail to exert a greater downward force to maintain level flight, enhancing longitudinal stability. This increased stability can result in a more controlled flying experience, as the aircraft will resist uncommanded pitch changes more effectively.

Regarding fuel consumption, a forward CG typically leads to increased aerodynamic drag, as the aircraft may require higher angle-of-attack to maintain level flight. Consequently, this can cause an increase in fuel consumption as the engines work harder to overcome the additional drag.

Given this context, the relationship between fuel consumption and stability when the CG is forward located is likely to lead to increased fuel consumption while enhancing stability, aligning with the answer that states fuel consumption increases and stability increases.