When Stock Prices Declined During the Great Recession,it Caused Aggregate

question 123

Multiple Choice

When stock prices declined during the Great Recession,it caused aggregate demand to decrease because

• A) households became more optimistic and increased consumer spending.
• B) the government raised taxes and decreased spending.
• C) firms' net worth decreased,leading to an increase in investment spending.
• D) household wealth decreased,leading to a decline in consumer spending.
• E) the government refused to allow the money supply to increase.