Multiple Choice
If the stock market crashes,
A) aggregate demand increases, which the Fed could offset by increasing the money supply.
B) aggregate demand increases, which the Fed could offset by decreasing the money supply.
C) aggregate demand decreases, which the Fed could offset by increasing the money supply.
D) aggregate demand decreases, which the Fed could offset by decreasing the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
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