If the Stock Market Crashes,then

question 47

Multiple Choice

If the stock market crashes,then

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

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and any other debts.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements, making it easier to compare entities internationally.

Current Liability

An obligation that a company is required to pay off within the current fiscal year or operating cycle, essentially a rephrased definition of current liabilities.