We resolve an existing paradox regarding the causality and symmetry properties of response functions within time-dependent density-functional theory. We do this by defining a new action functional within the Keldysh formalism. By functional differentiation the new functional leads to response functions which are symmetric in the Keldysh time contour parameter, but which become causal when a transition to physical time is made. The new functional is further used to derive the equations of the timedependent optimized potential method. [S0031-9007(97)05233-2]