The rapid growth of money supply,
And
,was due,in part,to the

Question

The rapid growth of money supply, 
And 
,was due,in part,to the

Quizplus · Accepted Answer

The rapid growth of money supply was due, in part, to the Fed's response to deflationary concerns. The Fed increased the money supply through the purchase of government securities, which increased the amount of reserves held by banks and hence the money supply. This expansionary monetary policy was aimed at preventing deflation, which could have led to a prolonged economic downturn. Therefore, the correct answer is C.

The Rapid Growth of Money Supply