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If the Stock Market Crashes, What Would Be the Effect

Question 91

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

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