If stock prices go up and people feel richer,aggregate demand will:
A) increase.
B) decrease.
C) stay the same because there have been no changes to the underlying assets.
D) be unpredictable.

Question

Quizplus · Accepted Answer

When stock prices go up, people who own stocks feel wealthier and tend to spend more money. This increase in spending leads to an increase in aggregate demand.

If Stock Prices Go Up and People Feel Richer,aggregate Demand