Which of the Following Is Not a Reason Why Aggregate

question 34

Multiple Choice

Which of the following is not a reason why aggregate demand decreased following the housing bubble collapse?

• A) People stopped investing in houses.
• B) Consumption decreased.
• C) Business investment decreased.
• D) Costs of production increased throughout the economy.

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Definitions:

Fixed Rate

An interest rate that remains constant over the life of a loan or investment.

Portfolio's Beta

A measurement of the volatility or systematic risk of a portfolio in comparison to the market as a whole.

S&P500 Value

The total market value of all stocks listed in the S&P 500 index, reflecting the performance of 500 large companies listed on stock exchanges in the United States.

Portfolio Value

The total worth of all investments in a portfolio, calculated by summing the current values of all assets held.