Everything Else Held Constant,an Increase in Financial Frictions ________ Aggregate

question 97

Multiple Choice

Everything else held constant,an increase in financial frictions ________ aggregate ________.

• A)increases;demand
• B)decreases;demand
• C)decreases;supply
• D)increases;supply

---

Definitions:

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

Socialism

A political and economic theory advocating for the ownership and regulation of the means of production by the community or state to ensure equality and fairness.

Political Economy

An interdisciplinary domain that analyzes the relationships between individuals, societies, markets, and governments, focusing on the production, distribution, and consumption of goods and services.

Capitalist Markets

Economic systems based on private ownership and the creation of goods and services for profit within a competitive marketplace.