If the Stock Market Booms

question 133

Multiple Choice

If the stock market booms,

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

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Definitions:

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