Suppose a Stock Market Crash Makes People Feel Poorer

question 161

Multiple Choice

Suppose a stock market crash makes people feel poorer.This decrease in wealth would induce people to desire

• A) decreased consumption,which shifts aggregate supply left.
• B) decreased consumption,which shifts aggregate demand left.
• C) increased consumption,which shifts aggregate supply right.
• D) increased consumption,which shifts aggregate demand right.

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Definitions:

Stable External

Refers to consistent, external conditions or factors that do not change significantly over time.

Incremental Mind-Set

A belief that abilities and intelligence can be developed through effort, strategies, and persistence.

Entity Mind-Set

The belief that personal qualities are fixed and cannot change, as opposed to a growth mindset that views abilities as developable with effort.

Particular Attribute

A specific quality, trait, or characteristic that distinguishes someone or something from others.