If the Stock Market Booms,then

question 101

Multiple Choice

If the stock market booms,then

• 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:

After-Sales Department

A division of a business that handles customer service, support, and warranty claims after the sale of a product.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed, instead of adjusting net income on an accrual basis.

Service Department

A division within a company that provides support services rather than producing goods, such as IT or human resources.

Information Technology

The use of computers and software to manage information, including processing, securing, and exchanging data.