The aggregate consumption function is C = 1,000 + 0.9Yd. If income is $3,600 and net taxes are $600, consumption equals

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

Restricting imports of Brazilian shoes will

a. raise the price of both Brazilian and domestically produced shoes b. raise the price of Brazilian shoes but lower the price of domestically produced shoes c. lower the price of Brazilian shoes but raise the price of domestically produced shoes d. lower the price of both Brazilian and domestically produced shoes e. benefit the producers of shoes in Brazil