J. An aggregate demand shock because it reduce the supply of money and affected private wealth, especially of those holding unaccounted money. |
K. An aggregate supply shock to the extent that economic activity relies on cash. |
L. An uncertainty shock because economic agents faced imponderables related to the magnitude and duration of the cash shortage and the policy responses. |
M. Consumers deferred or reduce discretionary con- sumption. |
N. Firms scaled back investments. |
A) All are correct
B) I, K, L are correct
C) M & N are correct
D) K, L, M & N are correct
Correct Answer: A
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