Between 1929 and 1933,what triggered a major contraction in the money supply?
A) high inflation
B) low inflation
C) high unemployment
D) bank failures
E) government instability

Question

Quizplus · Accepted Answer

Bank failures triggered a wave of panic among depositors, who began to withdraw their money from banks en masse. This led to a major contraction in the money supply, as banks had less money to lend out and were forced to call in loans. This contraction in the money supply helped to deepen and prolong the Great Depression.

Between 1929 and 1933,what Triggered a Major Contraction in the Money