Prior to January 2000, the Demand for Money Increased as People

question 92

Multiple Choice

Prior to January 2000, the demand for money increased as people anticipated Y2K problems.To offset this increase in money demand, the Fed would have had to ______ the money supply, which would have put ______ pressure on nominal interest rates.

• A)increase; downward
• B)increase; upward
• C)decrease; downward
• D)decrease; upward

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Definitions:

Formal Tone

A style of communication that is polite, restrained, and adheres to traditional standards and conventions.

Euphemistic

A manner of expression that uses mild or indirect words or phrases to describe a situation, event, or action, often to avoid causing offense or to mitigate the impact of harsh or blunt reality.

Tenacious

Tenacious describes an individual or behavior characterized by persistence and determination in pursuing goals or overcoming difficulties.

Unyielding

Describes something or someone that is inflexible, firm, or resolute in their stance or decision.