In December 1999 People Feared That There Might Be Computer

question 87

Multiple Choice

In December 1999 people feared that there might be computer problems at banks as the century changed.Consequently,people wanted to hold relatively more in currency and relatively less in deposits.In anticipation banks raised their reserve ratios to have enough cash on hand to meet depositors' demands.These actions by the public

• A)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• B)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.
• C)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• D)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.

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Definitions:

Less is More

A design principle emphasizing that simplicity and clarity lead to good design, often associated with the minimalist movement.

De Stijl

Dutch, “the style.” An early-20th-century art movement (and magazine), founded by Piet Mondrian and Theo van Doesburg, whose members promoted utopian ideals and developed a simplified geometric style.

Gerrit Thomas Rietveld

A Dutch architect and furniture designer, recognized for his contribution to the De Stijl movement and designs like the Red and Blue Chair.

Piet Mondrian

A Dutch painter famous for his contribution to the De Stijl art movement, known for his abstract works characterized by horizontal and vertical lines and primary colors.