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

Question 56

Multiple Choice

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


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

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