A decline in the stock market,which makes consumers poorer,would cause
A)the aggregate demand curve to shift to the right.
B)the aggregate demand curve to shift to the left.
C)a movement down and to the right along the aggregate demand curve.
D)a movement up and to the left along the aggregate demand curve.

Question

Quizplus · Accepted Answer

A decline in the stock market means that consumers will have less wealth, which will reduce their willingness and ability to spend on goods and services. This will lead to a decrease in aggregate demand, causing the aggregate demand curve to shift to the left.

A Decline in the Stock Market,which Makes Consumers Poorer,would Cause