I was just wondering if there was a crash in the stock markets, which would be affected; aggregate demand or aggregate supply. My assumption would be that since people put their own income into the stock market, in the event of a crash aggregate demand would be affected (decrease). Also because the stock market is a reflection of invstor and consumer confidence so, if it where to crash then people would consume less and save more. Is my assumption correct, or am I wayy off? If so please correct me.
thanks in advance!
thanks in advance!