When the Government Pursued a "Tight Money" Policy During the Great

Multiple Choice

When the government pursued a "tight money" policy during the Great Depression,it caused aggregate demand to decrease because it

A) led to an increase in stock prices and household wealth.
B) reduced consumer spending and investment spending.
C) caused tax rates to decrease.
D) led to very high rates of inflation,which eroded household spending.
E) caused a rapid decline in exports to other countries.