Because the nominal interest rate is always positive, the discount factor is always

If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit

Indicate whether the statement is true or false

Which of the following would cause the consumption function to shift downward?

a. A decrease in taxes b. A decrease in interest rates c. Consumers become more pessimistic about the future d. Consumers become more optimistic about the future e. None of the above