Which of the Following Describes the Process Through Which a Major

question 118

Multiple Choice

Which of the following describes the process through which a major decline in the stock market leads to a change in aggregate demand?

• A) Banking panics lead to the removal of deposit insurance and a negative AD shock.
• B) Increases in net exports generate a negative AD shock.
• C) Reductions in consumer wealth produce a negative AD shock.
• D) A stock market bubble bursts,and this leads to a negative supply shock.

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