Research has shown that the countries that suffered a banking crisis during the early 1930s
A)had smaller declines in the money supply than did countries that did not suffer a banking crisis.
B)had larger declines in output and employment than did countries that did not suffer a banking crisis.
C)had smaller declines in output and employment than did countries that did not suffer a banking crisis.
D)were located exclusively in Europe.

Question

Quizplus · Accepted Answer

Research has shown that the countries that suffered a banking crisis during the early 1930s had larger declines in output and employment than did countries that did not suffer a banking crisis. This is because a banking crisis can lead to a decrease in lending and investment, which can then lead to a decrease in economic activity and output, as well as job losses.

Research Has Shown That the Countries That Suffered a Banking