If nominal wages are downwardly rigid, a countercyclical policy ...

[lracut11]

If nominal wages are downwardly rigid, a countercyclical policy during a recession leads to ________.
 
  A) a fall in consumption B) an increase in tax rates
  C) an increase in employment D) a fall in investment

Question 2

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

[Benayers]

Answer to Question 1

C

Answer to Question 2

D

[lracut11]

TYSM

[scikid]

Excellent