When the U.S. banking system collapsed during 1929-1933, the money supply increased dramatically.

Name: When the U.S. banking system collapsed during 1929-1933, the money supply increased dramatically.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

When the U.S. banking system collapsed during 1929-1933, the money supply actually decreased. This was due to a reduction in the amount of loans being made and the contraction of the money multiplier effect.