The Great Depression is thought to have been prolonged and made deeper by
A) contraction of the money supply.
B) the stock market crash.
C) speculative behavior of investors.
D) rapid inflation.

Question

Quizplus · Accepted Answer

The contraction of the money supply, in which the Federal Reserve tightened its monetary policy, is thought to have exacerbated and prolonged the Great Depression by reducing the amount of credit available for lending and investment, which in turn led to deflation and decreased economic activity.

The Great Depression Is Thought to Have Been Prolonged and Made