A Credit Crunch Reduces Aggregate Demand By

question 33

Multiple Choice

A credit crunch reduces aggregate demand by:

• A) increasing the exchange rate.
• B) increasing interest rates.
• C) reducing consumption and investment spending.
• D) reducing the money supply.

---

Definitions:

Hero

A person admired for their courage, outstanding achievements, or noble qualities, often the protagonist in stories.

Emotionally Charged

Referring to situations or subjects that evoke strong emotional responses.

Complexes

A collection of thoughts, feelings, attitudes, and memories that focus on a particular concept, often unconsciously influencing behavior.

Supraordinate

A term typically used in social psychology to describe a group identity that transcends the smaller group identifications of its members, promoting broader social unity.