Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The statement that the Great Depression would have been less severe if the Federal Reserve had acted appropriately is true. The Federal Reserve's failure to provide enough liquidity to the banking system and to prevent a contraction of the money supply exacerbated the economic downturn. A is false, as the Great Depression was one of the most severe economic downturns in history, with high levels of unemployment and widespread suffering. B is false, as the Great Depression occurred during the 1930s. D is false, as even well-functioning economies can experience economic cycles with periods of growth and contraction.

Which of the Following Statements Is TRUE