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:

Balanced Scorecard

This is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Internal Process

Activities and operations carried out within an organization to ensure the effective creation of goods or delivery of services.

Innovation And Learning

The process of creating new ideas, products, or methods and the acquisition of knowledge to improve efficiency or effectiveness.

Residual Income

A measure of the income that exceeds the minimum required return on a company's investments or operations.