Any event that creates a "crisis in confidence" is likely to lead to
A)higher aggregate prices.
B)lower aggregate prices.
C)higher aggregate output.
D)inflation.

Question

Quizplus · Accepted Answer

A crisis in confidence typically causes consumers and businesses to reduce their spending, leading to a decrease in demand for goods and services. This drop in demand usually results in lower aggregate prices rather than higher prices.

Any Event That Creates a "Crisis in Confidence" Is Likely