When 9,000 Banks Failed During the Great Depression,it Caused Aggregate

question 38

Multiple Choice

When 9,000 banks failed during the Great Depression,it caused aggregate demand to decrease because

• A) consumers responded by decreasing their rate of savings and increasing spending.
• B) the government didn't help the banks,causing the money supply to decrease.
• C) expected income increased,causing an increase in investment.
• D) it led to very high rates of inflation,which eroded household spending.
• E) it caused a rapid decline in exports to other countries.

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Definitions:

Domiciles

The places where individuals have their permanent homes or principal establishments, and to which, whenever they are absent, they intend to return.

Durable Power

A legal document granting someone else the authority to act on another's behalf, remaining in effect even if the granter becomes incapacitated.

Incapacitated

A state where an individual is unable to make informed decisions or manage their own affairs due to mental or physical limitations.

Codicil

Some addition to or qualification of one’s last will and testament.