Most economists believe the severity and duration of the Great Depression was primarily the result of
A) the large budget deficits of the federal government.
B) the reduction in tariffs and the influx of foreign imports during the early 1930s.
C) the excessive use of credit cards.
D) a sharp contraction in the money supply.

Question

Quizplus · Accepted Answer

The Great Depression's severity and duration were largely due to a sharp contraction in the money supply, as the Federal Reserve failed to provide adequate liquidity to banks, leading to widespread bank failures and a decrease in consumer spending and investment.

Most Economists Believe the Severity and Duration of the Great