In the 1973-1975 recession, the value of common stocks in real terms fell by nearly 50%. How

Question:

In the 1973-1975 recession, the value of common in real terms fell by nearly 50%. How might this decline in the stock market have affected aggregate demand and thus contributed to the severity of this recession? Be specific about the mechanisms through which the stock market decline affected the economy.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...