Which component of aggregate demand plunged sharply at the start of the Great Depression?
A) investment
B) consumption
C) government purchases
D) transfer payments

Name: Which component of aggregate demand plunged sharply at the start of the Great Depression? A) investment B) consumption C) government purchases D) transfer payments
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Question

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Investment plunged sharply at the start of the Great Depression. This was due to a decrease in business confidence and a decrease in available credit for investment.

Which Component of Aggregate Demand Plunged Sharply at the Start