Which of the following is most likely to happen if aggregate consumption in an economy falls steeply?

A) Asset prices rise. B) Mortgage defaults fall.
C) Labor supply falls. D) Firm bankruptcies rise.

D

Economics

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What are the three forces that cause the aggregate demand curve to slope down? Explain

What will be an ideal response?

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In a general equilibrium model, a tax on a single factor in its use only in a particular sector can affect returns to all factors in all sectors.

A. True B. False C. Uncertain

Economics