(Consider This) Monetarists Claim That the Financial Crisis and Resulting

question 92

Multiple Choice

(Consider This) Monetarists claim that the financial crisis and resulting 2007-2009 recession were caused largely by

• A)monetary policy that was too loose for too long.
• B)monetary policy that was too tight for too long.
• C)unexpected changes in the velocity of money.
• D)declines in business and consumer confidence.

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Definitions:

Debit Postings

Entries made on the left side of an account, increasing the balance of assets and expenses or decreasing liabilities and equity.

Credit Postings

Entries made on the credit side of an account ledger, indicating an increase in liability, revenue, or equity accounts, or a decrease in asset or expense accounts.

Liability Account

An accounting record used to track obligations the company owes to others, such as loans, leases, or accounts payable.

Expense Account

An account in which businesses record and track expenditures related to specific activities, such as travel or entertainment, for accounting purposes.