One of the best examples of an episode in which a change in monetary policy appears to have been an exogenous event is the ________ in reserve requirements in ________.
A)increase; 1936-1937
B)decrease; 1936-1937
C)decrease; 1818-1819
D)increase; 1818-1819

Question

Quizplus · Accepted Answer

The increase in reserve requirements in 1936-1937, known as the "Roosevelt Recession," is well-documented as an exogenous event in which a change in monetary policy by the Federal Reserve contributed to a significant economic downturn. The other options listed do not have as clear of evidence supporting them as exogenous events.

One of the Best Examples of an Episode in Which