Which of the Following Was Not an Explanation for the Lower

question 50

Multiple Choice

Which of the following was not an explanation for the lower volatility of the U.S. economy during the 25-year period that preceded the Great Recession?

• A) Improved monetary policy
• B) Positive structural change in the economy
• C) Increased government spending
• D) Good luck

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Definitions:

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets that are provided via debt.

Current Liabilities

Liabilities due within a short period, typically less than a year, that are supposed to be paid out of current assets.