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    Macroeconomics Study Set 39
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    Exam 20: The Financial System: Opportunities and Dangers
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    A Credit Crunch Reduces Aggregate Demand By
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A Credit Crunch Reduces Aggregate Demand By

Question 33

Question 33

Multiple Choice

A credit crunch reduces aggregate demand by:


A) increasing the exchange rate.
B) increasing interest rates.
C) reducing consumption and investment spending.
D) reducing the money supply.

Correct Answer:

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