If the Stock Market Crashes,then

question 56

Multiple Choice

If the stock market crashes,then

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

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Definitions:

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating the stability and growth potential of the dividends over time.

Investor's Return

The profit or loss realized by an investor, typically reflected as a percentage of the investment's initial value.