Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to rise by 28 percent from 1929 to 1933.

Name: Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to rise by 28 percent from 1929 to 1933.
Brand: Quizplus
Rating: 4.7 (35 reviews)

Question

Quizplus · Accepted Answer

The U.S. money supply actually decreased by about a third from 1929 to 1933, primarily due to bank runs and failures, not an increase in the money multiplier.

Bank Runs and the Accompanying Increase in the Money Multiplier