The ________ due to a countercyclical policy during a recession ...

[cnetterville]

The ________ due to a countercyclical policy during a recession is ________ when wages are downwardly rigid than when wages are flexible.
 
  A) increase in employment; lower B) increase in interest rates; lower
  C) increase in employment; higher D) increase in taxes; higher

Question 2

Assuming all else equal, if households are pessimistic about their future income, it is likely to cause a(n):
 
  A) upward movement along their credit demand curve.
  B) rightward shift of their credit demand curve.
  C) downward movement along their credit demand curve.
  D) leftward shift of their credit demand curve.

[momo1250]

Answer to Question 1

C

Answer to Question 2

D