Suppose Aggregate Demand Fell

question 3

Multiple Choice

Suppose aggregate demand fell.In order to stabilize the economy,the government might

• A)decrease the money supply.
• B)decrease government expenditures.
• C)decrease taxes.
• D)do nothing.

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Definitions:

Purchase Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.

Bankruptcy

A legal process that allows individuals or entities unable to meet their financial obligations the opportunity to discharge or reorganize their debts.

Court Order

An official proclamation by a judge that defines the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings.

Repossess

Repossess is the act of a lender or seller taking back property from the borrower or buyer, usually due to failure to meet the terms of payment or other conditions of the agreement.