If the Stock Market Crashes, What Would Be the Effect

question 91

Multiple Choice

If the stock market crashes, what would be the effect on aggregate demand and how could the Bank of Canada offset those effects?

• A) aggregate demand increases; by increasing the money supply
• B) aggregate demand increases; by decreasing the money supply
• C) aggregate demand decreases; by increasing the money supply
• D) aggregate demand decreases; by decreasing the money supply

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Definitions:

Axiomatic

Pertaining to self-evident truths or principles that require no proof.

Ideological Arguments

Debates or discussions rooted in strongly held beliefs or principles.

Outside Source

Information or knowledge obtained from an external party, not originating from one's self-conducted research or findings.

Ideological Arguments

Discussions or debates grounded in sets of beliefs, values, or principles that characteristically define the outlook of specific groups, movements, or societies.