What the economy needed in 1931 was an expanded money supply, lower interest rates, and easier credit.

Question

Quizplus · Accepted Answer

This is true. During the Great Depression, many economists believed that an expanded money supply, lower interest rates, and easier credit were necessary to stimulate economic growth and end the depression. The Federal Reserve, however, pursued a contractionary policy that reduced the money supply and increased interest rates, exacerbating the economic downturn.

What the Economy Needed in 1931 Was an Expanded Money