When Stock Prices Declined During the Great Depression,it Caused Aggregate

question 90

Multiple Choice

When stock prices declined during the Great Depression,it caused aggregate demand to decrease because

• A) households became more optimistic and increased consumer spending.
• B) household wealth decreased,leading to a decline in consumer spending.
• C) firms' net worth decreased,leading to an increase in investment spending.
• D) the government reduced taxes and increased spending.
• E) the government increased the money supply.

---

Definitions:

Procedural Justice

The fairness and transparency of the processes that lead to outcomes or decisions, affecting perceptions of fairness.

Interpersonal Conduct

The behavior and manner in which individuals interact with each other, especially within professional contexts.

Distributive Justice

The perceived fairness of the distribution of resources and rewards among individuals within an organization or society.

Unbiased Decision Maker

An individual who makes choices and judgments that are fair, impartial, and not influenced by personal preconceptions or prejudices.