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. an increase in uncertainty.
D. the use of unconventional policy tools by the Fed.
Answer: C
Economics
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On the diagram to the right a movement from A to B (downward movement on the demand curve) represents a
A. decrease in demand B. change in demand C. change in quantity demanded D. movement up the demand curve
Economics
In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending. b. Lower the discount rate for banks. c. Raise tax rates. d. Increase reserve requirements. e. All of the above
Economics