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.

---

Definitions:

Lobbying

The activity of attempting to influence decisions made by officials in the government, often by special interest groups or professional lobbyists.

Action Research Cycle

A reflective process of progressive problem-solving led by individuals working with others in teams, as part of a "community of practice" to improve the way they address issues and solve problems.

Data Gathering

The process of collecting information from various sources for specific purposes, such as analysis, research, or decision-making.

Implementation of Intervention

The process of applying strategies or actions intended to alter or influence a particular outcome or set of conditions.