Many economists blame the severity of the Great Depression on:
A) poor monetary policy conducted by the Federal Reserve.
B) the unwillingness of the federal government to increase spending.
C) the stock market crash of 1929.
D) overinvestment in capital.

Question

Quizplus · Accepted Answer

Many economists point to poor monetary policy conducted by the Federal Reserve as a primary cause of the severity of the Great Depression. The Fed's policies, including a tight monetary policy in the early 1930s, are seen as exacerbating the economic downturn and leading to bank failures, deflation, and a reduction in investment and consumer spending. While factors such as the stock market crash and overinvestment may have contributed to the crisis, the Fed's actions are seen as having a significant impact on the severity and duration of the Depression.

Many Economists Blame the Severity of the Great Depression On