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Suppose the Stock Market Crashed, Wiping Out $5 Trillion of Household

Question 67

Multiple Choice

Suppose the stock market crashed, wiping out $5 trillion of household wealth.Consistent with economic models based on historical trends, consumption spending might fall by as much as, but probably not more than:


A) $35 billion.
B) $200 billion.
C) $350 billion.
D) $2 trillion.

Correct Answer:

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