What Is the Effect of a Stock Market Boom, and How

Multiple Choice

What is the effect of a stock market boom, and how could the Bank of Canada offset that effect?

A) Aggregate demand increases, which Bank of Canada could offset by increasing the money supply.
B) Aggregate supply increases, which Bank of Canada could offset by increasing the money supply.
C) Aggregate demand increases, which Bank of Canada could offset by decreasing the money supply.
D) Aggregate supply increases, which Bank of Canada could offset by decreasing the money supply.