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:

Social Responsibility

A concept where businesses are obligated to act in a way that benefits society at large, beyond their own interests.

Multiculturalism

A policy or principle that promotes the preservation of different cultures or cultural identities within a society.

Pluralism

The coexistence of multiple groups, cultures, or entities within a single society, acknowledging diversity and encouraging equal respect for differing views.

Majority Cultures

Dominant cultural groups within a society, shaping its norms, values, and social institutions.