Multiple Choice
If the stock market crashes, what would be the effect on aggregate demand and how could the Bank of Canada offset those effects?
A) aggregate demand increases; by increasing the money supply
B) aggregate demand increases; by decreasing the money supply
C) aggregate demand decreases; by increasing the money supply
D) aggregate demand decreases; by decreasing the money supply
Correct Answer:

Verified
Correct Answer:
Verified
Q86: According to liquidity-preference theory, what is the
Q87: For Canada, the most important reason for
Q88: How do open-market sales affect the price
Q89: The wealth effect helps explain the downward
Q90: Which statement does NOT accurately explain the
Q92: For the Canadian economy, what is the
Q93: In a small open economy with a
Q94: What was Alan Greenspan, the former U.S.
Q95: What is the effect of a stock
Q96: Which statement is consistent with the long-run