The decrease in investment that occurred as a result of banks being unwilling to lend to businesses after the collapse of the housing bubble caused aggregate:

A. supply to increase.
B. demand to increase.
C. supply to decrease.
D. demand to decrease.

Answer: D

Economics

You might also like to view...

When there is a surplus of a product in an unregulated market, there is a tendency for

A. price to rise. B. quantity demanded to increase. C. quantity supplied to decrease. D. price to fall.

Economics

If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be

A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.

Economics