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.

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Definitions:

Extraversion

A personality trait characterized by sociability, talkativeness, assertiveness, and high amounts of emotional expressiveness.

Openness

One of the five major dimensions of personality, characterized by an appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious individuals.

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire to maintain positive social relations.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a strong sense of duty.