Which of the following did not happen during the onset of the Great Depression?
A)The money supply fell as households took money out of bank deposits.
B)The Fed conducted expansionary monetary policy.
C)Stock prices fell about 90 percent.
D)Disruption of the banking system made it difficult for some firms to obtain funds for investment.

Question

Quizplus · Accepted Answer

During the onset of the Great Depression, the Fed actually conducted contractionary monetary policy by decreasing the money supply, which worsened the economic downturn. Expansionary monetary policy would have involved increasing the money supply to stimulate economic activity.

Which of the Following Did Not Happen During the Onset