If the Stock Market Crashes, What Would Be the Effect

question 91

Multiple Choice

If the stock market crashes, what would be the effect on aggregate demand and how could the Bank of Canada offset those effects?

• A) aggregate demand increases; by increasing the money supply
• B) aggregate demand increases; by decreasing the money supply
• C) aggregate demand decreases; by increasing the money supply
• D) aggregate demand decreases; by decreasing the money supply

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Definitions:

Electronic Communication

The transmission of information using electronic systems and devices such as email, social media, and instant messaging.

Face-To-Face

Interaction with another person or persons in direct, physical presence, as opposed to through digital or remote communication methods.

Mediation

A conflict resolution process where a neutral third party helps disputants come to a consensual agreement.

Process Control

The use of technology and systems to monitor and adjust the operation of industrial processes to maintain desired performance.