Which of the following statements about the early 1930s is correct?

Question

Quizplus · Accepted Answer

During the early 1930s, the onset of the Great Depression led to a significant contraction in the money supply, while the monetary base (consisting of currency in circulation and bank reserves) did not decrease as sharply. This resulted in a decrease in the ratio of the money supply to the monetary base, as banks became more reluctant to lend, contributing to a decrease in the broader money supply.

Which of the Following Statements About the Early 1930s Is