Select either "increases" or "decreases" to answer each question correctly. Identify which direction the consumption function (C(Y)) and aggregate demand (AD) curves will shift when:
a) There is an increase in consumer confidence.
b) There is a decrease in taxes.
c) There is an increase in interest rates.
d) There is a decrease in government spending.
Options:
A) Consumption function (C(Y)) shifts increases, Aggregate demand (AD) shifts increases.
B) Consumption function (C(Y)) shifts decreases, Aggregate demand (AD) shifts decreases.
C) Consumption function (C(Y)) shifts increases, Aggregate demand (AD) shifts decreases.
D) Consumption function (C(Y)) shifts decreases, Aggregate demand (AD) shifts increases.