When 9,000 banks failed during the Great Depression,it caused aggregate demand to decrease because
A) consumers responded by decreasing their rate of savings and increasing spending.
B) the government didn't help the banks,causing the money supply to decrease.
C) expected income increased,causing an increase in investment.
D) it led to very high rates of inflation,which eroded household spending.
E) it caused a rapid decline in exports to other countries.
Correct Answer:
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