When the stock market crashes, what influence does it have on investment, consumption, and aggregate demand? Why?

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When the stock market crashes, what influence does it have on investment, consumption, and aggregate demand? Why? How should the Federal Reserve respond? Why?

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Macroeconomics

ISBN: 9781464182891

9th Edition

Authors: N Gregory Mankiw

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Question Posted: Feb 29, 2024 05:01 AM

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When the stock market crashes, what influence does it have on investment, consumption, and aggregate demand? Why?

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When the stock market crashes it can have significant effects on investment consumption and aggregate demand in the economy 1 Investment A stock market crash can lead to a decrease in investment level...View the full answer

Macroeconomics

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