If the Stock Market Crashes,then

question 47

Multiple Choice

If the stock market crashes,then

• A)aggregate demand increases,which the Fed could offset by increasing the money supply.
• B)aggregate demand increases,which the Fed could offset by decreasing the money supply.
• C)aggregate demand decreases,which the Fed could offset by increasing the money supply.
• D)aggregate demand decreases,which the Fed could offset by decreasing the money supply.

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Definitions:

Real Growth Rate

The rate at which an economy's gross domestic product (GDP) grows after adjusting for inflation, indicating the actual growth of economic output.

Budget Deficit

A financial situation where a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.

Future Generations

Refers to the members of society or communities that will live in the future, often considered in discussions of sustainability and inheritance.

Budget Deficit

Occurs when a government's expenditures exceed its revenues over a set fiscal period, leading to a shortfall that must be borrowed.