When the money supply declined by approximately 30 percent during the 1929 through 1933 period,
A) real output increased.
B) the general level of prices increased.
C) the velocity of money increased by a proportional amount.
D) unemployment increased.

Question

Quizplus · Accepted Answer

During the 1929-1933 period, known as the Great Depression, the decline in the money supply led to decreased economic activity and increased unemployment.

When the Money Supply Declined by Approximately 30 Percent During