A Cause of the Decline in the Velocity of Money

question 51

Multiple Choice

A cause of the decline in the velocity of money during the 2007-2009 financial crisis was a result of:

• A) the fiscal stimulus provided by the U.S. government.
• B) the lowering of the discount rate by the Fed.
• C) the use of unconventional policy tools by the Fed.
• D) an increase in uncertainty.

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Definitions:

Fall in Love

The emotional process of developing strong feelings of affection and attachment towards another person.

Oedipus Rex

A tragedy by the ancient Greek playwright Sophocles that tells the story of Oedipus, a man who inadvertently fulfills a prophecy that he would kill his father and marry his mother.

Aristotle

Ancient Greek philosopher and polymath, a student of Plato and teacher of Alexander the Great, whose works covered various subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, government, ethics, biology, and zoology.

Dionysian

Nietzsche’s term for the irrational, energetic principle within art, manifest particularly in music.