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:

Annual Dividend

The total dividend payment a shareholder receives from a company over the course of a year, often expressed as a per share amount.

Flotation Cost

Flotation cost is the total cost incurred by a company in offering its securities to the public for sale, including underwriting, legal, and registration fees.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Component Cost

Component Cost is the rate of return expected by investors on a specific source of financing, such as debt or equity, contributing to the company's overall cost of capital.